I think to best understand where it would go you would need to know what the source of the magic was.
The results would differ greatly depending on the answer to that question.
I have always had difficulty with game settings that had multiple sources of magical power.
That is one reason I always loved Howard's Hyborian Age. The magic/power always seemed to be derived from outside and as such its use was very limited but could still be quite powerful.
I'd have thought magic in the classical sense would probably act as a power source if anything! I imagine people harnessing magic to power machines and such, almost like electricity. I've always loved the idea of a state powered by magic with vast stone pylons belching magical energy outwards to power the surrounding areas.