While I agree and can imagine scenarios where things got very different/interesting (45 King gives Hard Knock Life to Biggie if he was alive, straight up) I wonder if we oversell this. If Biggie had lived he would have spent months touring and then would likely start trying to get off Bad Boy. Him being alive wouldn't have stopped Diddy going overboard with the jiggy shyt either, so DMX still likely drops Get At Me Dog. Maybe a less successful (minus Hard Knock Life) Jay takes shots at Biggie alongside Nas.
And none of that stops Dre from signing Eminem in 1999 or DMX doing what he did that year. I think a lot of shyt would have been the same, and if Biggie got off Bad Boy he would lose popularity IMO. Diddy's ear for commercial shyt is the main reason Big became what he became. Maybe it doesn't matter, maybe Biggie drops Hard Knock Life (or whatever his iteration would be) and keeps going. But I can def imagine a scenario where he cools off.