It's not quite science fiction, though. The descriptions of New York aren't dark or dreary, like one would expect from a short story that usually firmly placed in the horror/weird fiction category. There's these hints that something is not quite right, though. like the presence of these "Government Lethal Chambers" in Washington Square Park where, I guess one could kill them selves publicly. It's hinted at, but not really addressed further. it's these little details that color the story and make it uncomfortable. It seems tht United States that has embraced authoritarianism, and society social structure is heavily enforced by a militarized government.
EDIT: Written in 1895 not 1985!
Is it you, Marty?
(sorry, could not resist)
A lot of later sci-fi actually retreated to more human-like familiar notions of the alien. Very few sci-fi works have explored Lovecraftian aliens -- maybe Arrival (notable for the aliens being benevolent but Lovecraftian), The Expanse (though the alien machines use simulated human minds to talk to us, making them seem familiar), Alien (the Xenomorph), and a few others. Edit: the Blindsight series by Peter Watts is another.
The Alien franchise is a huge missed opportunity for failing to develop the Xenomorph as an alien race. I always thought it'd be neat if they turned out to be intelligent insect-like hive-mind aliens that just don't realize they're doing anything "bad" because they don't understand our concept of individuality. In their environment using some of the drones of another hive to reproduce would be fine, even a kind of social interaction, so when they do it to us think they're saying hello. Their apparent violence is just the ultra-utilitarian behavior of drones. Ripley's comment in Aliens about "I don't know which one is worse" might have been a hook for that. We might have eventually learned that our sociopaths were, in fact, quite a bit more "evil" than the xenomorphs, who are just very unlike us biologically.
I'm aware of some of Lovecraft's personal shitty views, but I think it's unfair to judge people from another time by the standards of this age. His views would not have been unusual for his place and time, and they only really show up at the edges of his works anyway. I read all his works and never really picked up on those subtexts until it was pointed out to me later.
He was sort of a perfect fit for the generation of kids raised on computer games and RPGs that had voracious appetites for new mythologies.
It is funny how once you get tagged with "underrated" it just stays with you forever, though.
The old people here might remember the anti-magic push in the 90s, the satanic panics and efforts to stop Halloween. Midi-chlorians were part of this, removing magic in place of scientific explanations. Then harry potter swept the movement away.