Dornil, I just tried running the game with a GTX1060 but it failed with a DirectDraw error. I had it running OK-ish with a GTX590 on the same Win7 machine, but that was 6 years ago.
Unfortunately, Mig Alley has fallen into the 'black hole of graphics compatibility' of the post-Glide and pre-DirectX9 era (roughly 1999-2002). GPU support of these games is a matter of luck and the situation will only get worse over time.
Apart from rewriting the game, the best bet would be a DirectX wrapper like DxWnd or running the game under Wine on Linux. Neither of them would likely work straight away, but both have logging facilities to find out exactly what is going wrong. It's always good if someone else has already done the legwork though.
DBond, what do you mean by 'updated to today's standards'? The same game running perfectly on modern hardware? or with DCS level graphics/flight modelling/load times as well?
I missed out on Mig Alley in its day and was still playing F22TAW, whose (frankly ridiculous) campaigns managed to engage with my brain in a way no other combat flight sim has done since, despite its 1997 graphics engine. Night missions were the best as I'd have to render the world largely in my imagination.
While I admire the technical achievement of engines like DCS and IL2 series, they utterly fail at creating a compelling 'world' that I can engage with.
This is all very subjective though.