I don't think the Mega Drive has a bad reputation at all. It did really well, especially considering it was competing with fucking Super Nintendo which, in my opinion, is the best Nintendo console ever.
The Mega Drive is a great console, just a shame that it wasn't very succesful in Japan, so japanese developers tended to not produce games or be familiar with the Mega Drive's hardware.
I do think that the Mega Drive is for some reason overrated in North America. I've seen lots of "Genesis" fans that are like, "Look at all this blast processing... Fat plumber Mario rescuing pink pricess is so lame and childish... Sonic is waaayyyy better, plus he saves cute little animals... now that's what I call mature. Genesis does what Nintendon't!"
I played both and prefer the SNES version. Not being biased, just thought it was better. That and I've never played a bad Capcom game.
I feel like everyone likes Virgin's Alladin better because of graphics. I think the gameplay in Capcom's game is much tighter and more precise. In the Virgin's Aladdin enemies are more like obstacles but in Capcom's Aladdin they sometimes react to something you do and you can use many of them as a way to reach hidden places by jumping on them. (Which was nothing new back in the 90's but still something that Virgin didn't do)