These are a couple shots of early E.T. concept art by special effects artist Rick Baker. As you can see, they clearly made the right decision making E.T. look like he does and not one of these burn-with-fire monsters.
The designs were actually done for a Steven Spielberg movie that was never made, Night Skies, which was going to center around a family terrorized by aliens in a rural farmhouse.
Although Baker refused to work on the designs for E.T. after Spielberg pulled the plug on Night Skies, his designs went on to inspire the alien that we all rooted for in 1982.