Sure but if the City had turned out to be full of people, those ancient rights would have been modified to suit the requirements of modern democracy. The City’s unique form of governance is only possible because it is predominantly a commercial district.
No I don’t think it would have. The City is fairly exempt from being fiddled with by parliament due to its direct relationship with The Crown. I don’t see any reason why the The City would give up its rights without a substantial fight.
Given its small area, I doubt anybody would ever be interested enough in fighting with The City to revoke its ancient rights, and independence from the broader UK government. Past monarchs and leaders have attempted to strip The City of its rights, all of them ultimately decided it wasn’t worth it.
