I believe it's a general consensus that Ala Mhigo isn't the prettiest looking city-state, and some argue that it barely qualifies as a city-state (myself included) due to the Ala Mhigan Quarter looking the way it is. Compared to what we see in the dungeon, I would love to see SE give it the Ishgard treatment in the way of a new district/housing ward especially with how better their map designers have gotten.

Ala Mhigo used to serve as an important trading hub for trade with the Near and Far East, and given the general sense of unity between these sides of the world, a new hub would serve as an excellent and visible indicator of progress.

And it'd be a great way of introducing actual Ala Mhigan furnishing items into the game. Seriously, there's jack for Ala Mhigans! Sans Ananta stuff, of course.