Movie Fact No One Really Paid Attention To Until Now

because there was no previous Prince Ali for him to take the place of.

Because he's a prince already since his father is the king of thieves.

Do you not remember the song 'Prince Ali' in the movie when the Genie presents him with his huge caravan of servants? The Genie did make him prince, and when he grants wishes it's in the vision of the person who makes the wish. Aladdin got everything he thought he needed to be a Prince. Just as Jafar got to be Sultan and take away everything from Jasmine's father, because that's how he envisioned his wish.

AAAAHHH he did get made a prince...eventually. For anyone who didn’t know Aladdin and Jasmine got married in a sequel, thereby making home a prince. The whole reason the genie was trying to get home to tell Jasmine the truth was not because he cared or some BS but because it fulfilled the wish, since he would be marring a princess afterward. Boom, blew your mind.