"Magic" is such a loose term that gets thrown around these days. Everyone's perception of what magic is can be different from their peers. Some people may think magic as conjuring things out of thin air, like magic tricks and card tricks (slight of hand and illusions). Others will describe the natural world as magical, or other things they have trouble explaining.
For me, I normally associate the word "magical" to an event that was very positive and rare. For example, me playing the bagpipes with Paul McCartney in front of 10,000 is something I'd deem magical. Or Sidney Crosby's theatrical overtime goal at the olympics causing every street in Canada to party as "magical". To this extent someone can even say that life itself is magical.
As in magic in the classical term, that being summoning incantations and performing spells, is fictional old age myth. Not to say that people aren't still fascinated with it, as I myself enjoy reading fantasy style novels that's laced with magical themes. It's an idea that I find can't be taken seriously anymore. Almost like that aliens guy on that really bad TV show on the History Channel...
Interesting discussion though, what are people's general definition of "magic"?