As conservative as I tend to be in these fields, I must say that the loop currently played in the Adventureland Bazaar courtyard is a tiny bit startling. I find myself trying to escape from it.
I suppose that if the area had been a bustling Arabian marketplace, as I'm sure the Imagineers intended it, the current/original music would have worked very well. It's very much "Fresh fish, we catch' em you buy 'em!/This bread/those fish/it's stale/they smell!"-type music. But it's not a bustling marketplace. It's a quiet little nook where people wait for their friends to return from the bathroom, and the music feels too busy.
The instrumentals to Aladdin are, dare I say it, possibly Alan Menken's best work. They're also atmospheric, soft and when played around the Bazaar, they felt like the beginning of an adventure. (I'm trying to avoid using the word "magical," but it's surprisingly difficult.) I'd much prefer them to return.
But yes, from a plausibility standpoint the current/original music does win, of course. It's hard to imagine a 50-strong Hollywood orchestra busking in Agrabah, although that is a hilarious image. I suppose it's a bit like Phantom Manor versus the Haunted Mansion — Physically probable music versus magically appearing cinematic music.