This "magic of childhood" is something I often discuss with my husband and the question of "How do we make sure our own son's childhood is magical without lying?" My husband has a scientific background and he is more apt to go into a lengthy explanation of blue light waves being smaller than other colors when traveling through the atmosphere when asked, "Papa, why is the sky blue?" I on the other hand (having no idea why the sky is indeed blue) will say, why do you think it is blue? And then suggest we find a book that explains it so we can learn. The magical answer to this blue sky question would be something along the lines of "because fairies paint it blue every day" but I just can't do it. I don't believe in lying to my children, even "cute" lies like this, it isn't respectful. I believe that he'll come up with some fairy/elf/magical stories on his own without me feeding it to him.
It is in this vein that I have started a whole new series that I'm obsessed with...the Children of Nature series. These childlike nature folk can be whatever the child dreams up. No story behind them, just open-ended toys that can let some magic in...if the child decides to. They started from my own childhood belief that there were magical tiny creatures hiding in nature, like the elves with their discarded acorn hats. While my own mother never said, "These are elf hats" she did say, "Don't these look like elf hats?" and that is the brilliant fine line between allowing the magic in without forcing it or lying.
How was your childhood magical? Are you still letting it in?