It seems the main alternative under consideration right now is a lockdown now for Chanukah that will be in effect only for cities with a Jewish majority.

That's how the report starts out, and it sounds awfully discriminatory.

But really, that is just a portion of the report. The lockdown would also include another separate lockdown at the end of December for cities with a non-Jewish majority.

the idea being that the lockdowns will be more targeted and focused on preventing the parties and potential mass gatherings. 

Over Chanukah the gatherings would be in Jewish cities, so no reason to lock down non-Jewish cities. Around Christmas and New Years time the parties will be in non-Jewish cities, so there is no reason to lock down the Jews. Each lockdown will be shorter than originally planned, as it will be specific to the holiday, and focused on the portion of the population relevant. 

It isn't a bad idea, if a lockdown has to happen in some way. It does sound more difficult to monitor and enforce, but the last lockdown wasn't overly enforced either.