Is Magical Realism something that English has borrowed from the Spanish Language? I am not terrible fimiliar with it, other than Like Water For Chocolate...read that last year during my senior year.
In my own Arts work in Ireland, which, as with much of the West, is over-run with Realist writers, I lend all my weight to supporting Imaginative literature (i.e., non-Realist stuff). As an Irish Hippy-Aesthete I follow and try to develop the beliefs of Oscar Wilde-- Oscar saw Imaginative lit/Art as way of rising above grubby Reality: "We are all in the gutter, but some of us are looking at the stars" And he wasn't too keen on Realist writers, who tended to get the rough side of his tongue!: "The man who calls a spade a spade should be compelled to use one" Seen from my logic, Magic Realism is a pretty cool thing! Anything that can take the Real and turn it into a more exciting form of art is a-OK in this particular hippy's book. More of this sort of thing I say!