I'd like to see magic as a mysterious force, not swords and spells and not manufactured goods and raw material. That's far more interesting to write about and to read about, in my opinion. If it's a magic node and as easy to exploit as oil, it loses its appeal as magic and instead becomes about as interesting in and of itself as oil is. While writing about wars over magic nodes is cool, we have a multitude of other natural resources to fill that slot.
Likewise, magitek can be interesting, but it passes out of magic (especially light magic) and into any of the -punk areas. Moreover, magic which is as easy to use as a musket is not anything resembling light or low magic, and is instead the worst plot device ever, because magic is no longer a mystery and instead a mass produced novelty which replaces all other commodities while simultaneously becoming Unobtanium and losing its status as magic and making for a boring story. A story about your envisioned magitek is, to me, the same as any other story in the 19th century with some random unobtanium introduced to the mix. We have a word for that: crap.
My ideal magic would be a subtle force which influences much of the story, but either indirectly or over the long term. Wizards would exist, but their magic is limited and their plans span years instead of seconds, as in mrandomplayer's outlined system for Phoenicia. To control magic is to prod it in your desired direction, not whip it into submission and ride it like a horse to plot-driven victories. To do so would result in insanity, and is a folly few would commit.
This system both is interesting while giving the south or flexibility in their approach to magic, as it is undefined in certain terms, defies limits and is a wild force to influence stories across the world. Moreover, it makes for interesting interplay with steampunk.
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Sorry about the poor quality of this post, but phones are a to write on, and I'm not particularly skilled either way.
Edit: @Tycho: I'm not refuting the history, the gods, the steampunk, the rivalries or the assassinations. Merely the magic.