had the second part of the sentence been "..and if that were to strike Earth.." wouldn't it have made more sense as far as parallelism is concerned.
This version would be wrong. You can't use "that" as a stand-alone pronoun.
The only acceptable use of "that" is in a comparison, where "that" stands for a noun that's in the other half of the comparison.
E.g., The sales tax rate in Nevada is lower than that in California.