Ramblings on Magic

Magic has always bugged me a bit in RPGs. Not for any reason I can put my foot on, perhaps the assumption that fantasy necessarily requires it. (Given the choice, I'd prefer very common magic or Lord of the Rings style where the wizard-types rarely use it but there are the subtle magics that are everywhere.) Part of the problem is a question of limits. What can it do? What can't it do? Why? What laws constrain it? Where do Gods come in?
The other problem, of course, is what using magic and it's existence does to the world. Before magic chop wood, carry water. Do you do the same after magic? Do you need to? IMO, most games seldom address these problems. (Either their magic system is crap, so they can pretend to igore it OR it's simply ignored.) I mean, you've got people who can do what (to us) is the impossible, unless it's subtle magics. Does one need a lottery ticket to win the lottery? I.e. can anyone learn magic? Anyone at all? Why would the nobility want to LET peasants learn magic? Does it break down social orders? Atre mages just eccentrics screwballs more concerned with the Stars Coming Right than taking over the kingdom?
I think part of the problem is the assumption that fantasy NEEDS magic. Sure, there is the suggestion of it, and people who claim to have it, but how necessary is it, really? All roleplaying is fantasy, in one sense or another. (Ditto with all writing.) Granted, players might want something like it, something not normal. So invent something.
Psychology.
Martial arts.
Placebo priests.
Alchemy.
Synchronicity.
Little magics (+ a few medium/ritual magics with mega-high costs) can be perfectly fine in a setting. Give people witchcraft as magic and use the rule of 3. Or intuition/hunches/foresight in dreams/a pet ghost and the like. Stuff that people believe in in our world, and may be treated with skepticism in fantasy land.

That, or define magic. Not the system, nor setting, but what it means to the world, how it's influenced the world, the fact that healing magics mean that the black plague never happens or that they're technologically more advanced than we are in some respects. I think it also boils down to a well-defined cosmology, and making sure that magic is a part of it, an integral piece of the world, and not something thrown in beause everyone knows fantasy has magic.
Throw out the supernatural villains and threats and see what happens....