It wasn't censored so much as it was a totally different game from a totally different development team and a different publisher. Capcom's Aladdin on SNES was an overly easy kid's game (pretty much anyone over the age of 6 will beat it in one sitting without needing to continue) whereas Virgin's Aladdin on Genesis was a pretty damn impressive and well balanced platformer.
The same debacle happened with Spiderman 2. While the console versions from Treyarch were widely considered excellent games, the PC version from Fizz Factor was totally different and substantially worse.