no you weren't wrong. it's one of those games when I was a kid where I looked in the background behind the action and was just captivated by the world. nice use of bright colors in the first couple of stages (FUCK THE FROG LEVEL JESUS WHY ALPHA DENSHI WHY). The bosses in that game were sick - man one of them had a pentagram written in blood! dude! pentagram! in blood! In 1990!!!
Unfortunately it was very much a 'put a quarter or two in it and just give up' kind of arcade game, which is why a sequel was never made. but man you're right, if one game deserved a sequel on the Neo it was Magician Lord - a sequel would've made everything better.
Also I just remembered there was a maze in one of the stages too, I think during the frog level...wtf were they thinking, just terrible terrible arcade game design for that part.
EDIT:
View attachment 45310
Damned demon dog's got horns for eyes lmbo