Oh, let me name the worlds of some of the books where there is magic (as described in the books/BEing magic)! (I've not moved from the chair, am typing as I visualize my book shelves.)
What about the worlds (in no particular order and just naming the books if not the world) of:
Mortal Instruments by Cassandra Clare
Dresden Files by Jim Butcher
Lord of the Rings by J R R Tolkien
Sandman by Neil Gaiman
Good Omens by Neil Gaiman and Terry Pratchett (which is actually 'this' world but as seen by those who choose to see)
Tortall by Tamora Pierce
The Silvered by Tanya Huff
Wheel of Time by Robert Jordan
Discworld by Terry Pratchett
The Family Tree by Sheri S. Tepper
The Paladin Prophecy by Mark Frost
The Blue Sword by Robin Mckinley
Neverwhere by Neil Gaiman
The Wood Wife by Terri Windling
Moonheart by Charles de Lint
These are all worlds which contain and are of magic. Some people have magic and it is inherent and others (mundanes) do not know about it (but the potential is there that the mundanes acquire it themselves). Others have worlds where everyone has magic but it is in different degrees -- and with some folks that degree of power can be developed with practice and use. Some have worlds where the use of magic is known and the people who don't have it know about it and fear those who have it (it's an inborn ability).
I find that the books that I particularly love are those where the magic is a potential in all of us, but only some choose to allow it to bloom, to develop and utilize it. That makes sense, if I think about it, because that's sort of how I feel, myself, about how it really is anyway. So of those books -- Mortal Instruments, The Silvered and Neverwhere would be places I'd love to live. In Mortal Instruments, only those with magic know about it. The Mundanes haven't a clue -- except there is a potential that any Mundane can acquire magic!. In The Silvered,virtually everyone is born with some sort of magic and everyone knows about it (and those without magic seem to be in cahoots to kill and/or control those with magic). In Neverwhere ... it appears to be a choice and most of the Mundanes refuse to acknowledge that those of magic exist (absolutely refuse to the point of not seeing the magic, or if they see it, they delete it from their memory).
In which world would I prefer to live? Mortal Instruments and/or Neverwhere. It's odd but yeah, magic is 'hidden' from the mundanes in those worlds, and yet, if something inside of the mundane wakes up, they have the potential of acquiring/being magic themselves.
*Avatar made by Amy*"You have the inborn natural right to remain silent. Don't think about it, don't talk about it, shuush ....... STILL." ~ Xaris