Sounds about right from the spoilers I've heard. I always did like Return of Jafar and what I saw of the TV show, but never really had the urge to watch that last movie.
Probably just as well. While you can't do animated Genie without his powers of any kind, they did have to bend over backwards to justify why he couldn't just snap his fingers and fix everything (from what I remember, he seemed dumber in the show then in the original movie).
I will agree that Mena Massoud, Naomi Scott, and Will Smith where the MVPs of the film, but Jafar was given the plot hook at the end. Granted, so far as I know, there aren't plans for a sequel, and, much as I would be onboard for seeing this iteration of the characters again, I have to say I'm not sure we "need" a sequel.
I guess I assumed that in context the former didn't "count" as wishes (heck, the Genie offers him advice pretty much non-stop above and beyond what's needed for the wishes). Also worth noting that in the scene where Aladdin gets drunk on the power of the lamp, the Genie makes an offhand comment that he'd "broke the rules" for him, so maybe the extra stuff at the party wasn't quite kosher with the official rules. (Maybe the party stuff also somehow counted as part of the first wish? That tie-in novel has Aladdin successfully talking the Genie into manufacturing a fake kingdom after the fact under the argument that it should be considered an aspect of the "become a prince" wish.)
Edit: Now that I think of it, hadn't Aladdin already rubbed the lamp when the Genie found him? That would've locked the Genie into needing to grant a wish, per the wishing rules, while at the party he was already out of the lamp. Maybe that was was the difference, having started the wish process vs. not having started it?
IMHO, that's an "original sin" of the story, since the carpet works the same way in first film both during the "Whole New World" scene (the characters literally travel the Eurasian continent in one evening) and in Aladdin's escape from the icy "ends of the earth" to face Jafar in Agrabah for round two.
Incidentally, the authors of the tie-ins may have had similar thoughts about the carpet. The Far From Agrabah novel has Aladdin commenting that the carpet's magic includes being able to cover vast distances in a quick amount of time, while the junior novelization states that between agreeing to marry Jafar and the actual almost wedding, Jasmine was procrastinating big time to delay the event. Both ideas would work to explain the timetable we see in the movie.