Many of SFII's backgrounds could have at least an extra layer of scrolling on PCE, no problem. Especially with the Arcade Card. You'd still get more and more closer to the arcade and easier with the MD/MCD, but just because NEC's rushed time-sensitive port didn't use any doesn't mean that it couldn't be done.
The 320 pixel wide resolution adds 8 extra tiles of width for one screen alone. I can't measure the cart ports screens right now, but even with the letterboxing, the screen scrolls up enough that there's about 28 tiles high of background graphics. So by switching to the 320 pixel resolution, you're instantly adding 224 extra tiles per screen size to each (2-screen size?) stage, but are gaining zero added content so far. Add in the extra sprites to fill out larger characters and again, you have a large jump in size before you add a single extra frame of animation.
I don't know how efficient tiles are for memory on Genesis, but even without relying samples for the entire soundtrack, the SNES ports were still smaller. Maybe SNES sound compression is super amazing, but most SNES games have large sizes compared to content. Maybe Capcom just never tried vety hard with Genesis development, but that would mean that Sega would have had to convince them to let them pirt their cash cow for them, which was never going to happen.
It sounds like you're talking about streaming content in a Mega-CD port. If so, I don't think it would be practical for SFII. I do think that a Mega-CD port of a Genesis port could have added some extra content if a good developer did the conversion, but I don't think that a Mega-CD port would crush the cart versions. Even the Arcade Card ports of Neo Geo fighters, programmed by PCE experts, had content cut. And that was with a solid three times the memory of the Mega-CD.