I still think there are enough older buildings in the surroundings that would make a restored 1 times square fit right in. You have the knickerbocker building and more importantly the paramount building which is right across the street. I think the contrast in between the old and new would also allow it to have more weight. It would immediately catch the eye and be a testimony to how far NYC has gone. But that said this is only in my very utopian view and I doubt anything of the old building is left under that facade so the second best option for me would be, like you said a landmark tower to dominate the area.