We're not living- [or whatever] -in a storybook. 'Magic' is... sensational, at best.

[At best, because stage magic is the most human magic he's familiar with and it's not a real thing at all. He's sure he's making this a bigger deal than he must, it's just a word, but he's very particular about "powers."]

Do you really think I'm afraid of your knives? Magic or not, that's standard fare as far as I'm concerned. [...] I mean I've seen similar, not that it's unimpressive.

[so in conclusion it's all semantics]