This was not replaced with a simpler effect in the final film, the scene was simply abandoned. The Troller sequences, featuring a giant beast swimming in sand, would have also happened around this part of the film, likewise requiring elaborate sand effects. That idea was cut too.
A very weird addition would have been Nokama being able to levitate dirt that replays events in 3D like some security recording. I understand why this was removed. Aside from the difficulty of animation, it comes out of nowhere and makes no sense. How or why could Nokama do this?
As a remnant of the original idea, the hologram starts out incomplete and only turns full once all six Toa Stones are placed in the shrine. I like this version better, since why would the stones combine into the shape of Lhikan's mask in specific? He stole them, he didn't make them.
The six Toa Stones would have combined into the shape of Lhikan AKA Lihii's mask. This is similar in concept to the Makoki Stones from 2001 that combine into a sphere. This was replaced in the film by a holographic mask, a much simpler effect.
The effect would presumably have looked similar to the rising pillars of the Coliseum arena but more elaborate. The kinetic displays were replaced by simple 2D video screens and a painted billboard. Beyond an interesting visual, the original idea would have given more context to the arena design.
These ambitious visual effects would have made the setting and characters more unique. But LoMN is a low budget film rushed to meet a deadline, and it already juggled way too many ideas anyway. It's a shame but also understandable that many effects couldn't be realized.
The Dume-Makuta reveal was also planned to be done with a mirrored kinetic display. Not sure how that would work or why a mirror would be designed like this, but it partially explains the conceptual origin of the mirror seen in the film that ripples like liquid.
Nivawk AKA Ka-Ki would have been able to create a flipbook-style holographic image by flapping his wings to report what he has seen to Turaga Dume. Replaced in the final film by Nivawk simply squawking in his ears in bird language.
As an aside, this brings to mind the scene from the movie Transformers One where floating dirt is used to play out a flashback and record it. The two films share a good handful concepts, so if LoMN hadn't cut its own dirt playback scene, it could have been another one.