God doesn't deal in falsehoods so His prohibition against such things by the very nature of the prohibition tells me that this stuff is real. In the end, my fantasy magic is just that, fantasy. Real magic, real witches, real divination - well that's something all together different. Those practices, whether the practitioner will admit or not, are grounded in evil. So, if we stay away from the real thing I am not going to sweat it too much that I like the tales.
I have to admit though, certain times during magical tales I think, "Man, they need to pray." Because in the end there doesn't seem to be room for God in these tales. There is a scene in Harry Potter and the Order of the Phoenix where Mr. Weasley is critically injured. In the book, they are fretting and pacing and worrying but they are not praying - that struck me. I've read some fantasy romances where they are fighting evil but they are not fighting with the only weapon we are given, the Word. NBC has a new show, Contantine, and there is such a twisted theology abounding in the story it's hard to watch. How do you fight the devil without the Lord?
Several authors have written great books that capture the magic from the Christian worldview. This Present Darkness and Piercing the Darkness by Frank Peretti changed my life, by changing the way that I viewed everything. Ted Dekker has written some great thrillers, Blink being one of my favorite to demonstrate the power of prayer. There is magic all around us, there is power in our prayers and we DO serve a supernatural God. We need not exchange the counterfeit for the real, I just wish there was more real well done stuff in the market.