I think they should keep it elegant and not cheese it up with an array of plywood cutouts of Aladdin and the Genie. Try to use a color pallet that represents the Middle East and not just slap everything with Barney purple, Princess pink and Genie blue. The ride itself should take place from the first person perspective, IE: we are Aladdin. We do not see him throughout the ride, as was the original Snow White ride. Once through the cue the ride cars would be a fusion of the Peter Pan’s Flight cars and the Magic Carpets of Aladdin car. However, it would have one distinct difference. There would be a small push button control panel for each of the guests. (more on that later) 
The guest would sit down inside the carpet and be whisked away to the city of Agrabah. The small town we see below the carpets would be similar to the Peter Pan ride. However, it would be on a slightly bigger scale, so the carpets would have to be physically further away for the same effect. Why bigger you ask? Well, instead of a small docile model set. I think the town should have mini AA's, about the size of action figures. They can walk around, interact with each other and look up at you while you fly by. The next scene takes us to ground level where we encounter AA's of Jafar, his cronies and Lago. They have captured Princess Jasmine. The next scene shows the princess in shackles and looking very sad... But wait who is that, it's the little monkey Abu with the key. As we enter the next area we see that Jasmine is free and wants to ride with us. I'm not sure how this could be done, but I think that Jasmine should somehow board our carpet for the rest of the trip. Either some kind of pop-up AA or with a Finding Nemo ride style projection trick. We then happen across the Genie lamp. We are told by a voice to rub the lamp, then the Genie pops out. The Genie would be another Nemo projection style character. The Genie then offers three choices of where we would like to ride off in to the sunset, so to speak. Different areas of the world or maybe even imaginary CGI created places. Here is where those Horizons style push button pads come in. Everyone in the carpet would make their wish and the popular vote gets it. The carpets then situate themselves in front of an Imax screen and we are taken to "a whole new world." with the music to accompany the end of the ride.
