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Manchester City certainly won't want a draw in this match, they will target a win to strengthen their position on the standings. Indeed, if you look at it now, of course Arsenal have had a pretty good rally because they managed to win in a row while Manchester City got 2 draws and 3 wins in the last 5 matches. For Pep Guardiola, of course this is quite a tough match for them because this season Arsenal mentality to become champions is getting ready and they certainly won't let this season's chances fail again.
However, if the scenario is like what you said, of course it would be more profitable for Liverpool because they could overtake Arsenal again if Liverpool also managed to win that week. That way, I think the 29th match is really quite exciting because we will see these teams swap places if they fail in the match they are playing.
I don't really like to say that Arsenal is underestimated by many predictions. The probability of a home win for Manchester City is too high compared to Arsenal, even the probability of a draw is quite low. Manchester City is really the favorite to win at home, not only by users like me but many bookmakers also believe that.
I realize that Manchester City are the better team at home so far against Arsenal, but Arsenal don't really deserve to be underestimated like that when they are also having such a good performance. Arteta seems to have started to learn a lot about how to beat Manchester City based on their last two matches, but Manchester City is still the favorite compared to Arsenal.