Yep, exactly. Even the designer of the SNES version (Shinji Mikami - who became most famous for his work on Resident Evil) preferred the Genesis version because Aladdin used a sword in the Genesis version and not in the Super Nintendo version.

Apparently from what I understand Sega secured the license for Aladdin and enlisted Virgin Games to do the development. At the same time I guess Capcom owned the general rights to publish Super Nintendo games with Disney characters, so they developed the own Aladdin game.