Well, in an interview with E! News, co-director Ron Clements revealed that this theory is 100% true! ”³That was the whole intention, originally,”³ said Clements. ”³We even had that at the end of the movie, where he would reveal himself to be the Genie, and of course Robin did the voice of the peddler. Just through story changes and some editing, we lost the reveal at the end. So, that's an urban legend that actually is true.”³
Co-director John Musker also revealed where the movie was initially supposed to be set. ”³We kept it Baghdad in our first treatment, and then the (first) Gulf War happened,”³ explained Musker. "Roy Disney said, 'This can't be in Baghdad.' So, I took letters and did a jumbled anagram and came up with Agrabah.”³
Another Aladdin rumor was that, in one scene, Aladdin whispered the phrase, ”³Good teenagers, take off your clothes.”³ Which seems like it would be an odd thing for Aladdin to say, but who knows? Did he say it?
Well, Scott Weinger, who provided the voice of Aladdin, says no. ”³the thing about Aladdin saying, 'Take off your clothes'...The truth is that I never said it,”³ Weinger told E! News. ”³Let me tell you, being in the recording studio with Robin Williams, wanting to do a good job and not blow it, there's no way I would have made some dirty joke.”³