Oh interesting. I'm not sure how I missed that part! That is a fantastic idea and it is a shame it wasn't fullfilled in the series.
The reason for Skeletor not recognising Adam is because of something not followed up from the series bible. Prince Adam was actually supposed to have Eternian dress up until he first meets Master Sebrian, who in taking him in as his "nephew" Adam gives him some Priman clothing to wear (the toga). Adam would lift the hood on his toga up when Skeletor was around so that he wouldn't be recognised, but this wasn't kept up in the series at all.