Yes, they should have, I remember there were some fans' dissapoinment about Altered Beast being a bundled in game with SEGA Genesis console.
Eventhough the game was kinda arcade perfect (or arguably better since it has parallax scrolling), fans feel the game's too "shallow" for a console game.
That's why Tom Kalinske asked SEGA Japan to replace it with Sonic the Hedgehog.
But of course once again, time restraints usually made the developer who ported the game couldn't add anything new into the game other than minor changes.
It was a good call on Tom's part given it was important to put Sonic's face on Sega.
But I can't (or can, sort of) blame Sega for time constraints on porting Altered Beast because while they were thriving in the console business at the time they were still mostly porting arcade games because arcades what they do.