Finally: If this aint sorted DF is not going anywere in terms of gameplay. Whats worse is were going to spend years stewing over it.
While I agree with some of your arguments, and find most at least logical, I just dont at all agree with this above part. I find it quite rubbish

You have read the devlog lately have you? Personally I think the game is actualy quite fun allready without the magical fireballs and steamengines. And its gonna get a whole lot more fun next version. 'Fun' too. Without magic or technology.
While I dont think either of those would be a bad idea no matter how its executed, I think that right now its pointless dicussing it. The game is after all, not finished yet. The making of a magic/tech system would realy depend on how the game eventualy looks. Making a ton of magic/tech placeholders right now would be a waste of time. Hence it being sceduled post version 1.
Of course there might be for a completely different reason it goes in post version 1, but either way discussing this now will yield about as much as all the other magic/tech topics.
The only thing I can see going in is some new mechanical buildings, like multi-z-level buildings. Like medieval lattice gates (the big spiky iron ones in castle gateways), multi-z-level axles, maybe even some buildings that have annimals or dwarves generate power. Still, it will take a long time for even those to emerge. So before you can make your very magical steampowered computer that automatically turns puppies into +puppy biscuits+, you will be quite a few years older.
That would be fun though.
Maybe its possible now, except for the magical steam thing. If you lock up some dwarves in it to butcher and cook. Yeah, they just need acces to water. They can eat all the puppy they like. And an automatic infant annimal killing mechine I allready made once... Im so going to make that.
Well, made my point.