It does feel like the "obvious twist" that we might have ended up seeing if Ridley had ever gotten to make a third prequel, but yeah it would have been terrible, not to mention make absolutely no sense. Androids aren't biologically alive, so frankly I don't see any way that you could get an audience to buy that it'd be possible to have an Alien gestate inside one after having so many movies showing us that they need living hosts to grow.
Otherwise if they didn't they'd be better off just facehugging a bunch of refrigerators or something. Way less hassle on everyone's part.