What level of Magic have you all used in your Terrinoth setting games? From reading the book I get the sense that it's rare and powerful. There was a time where it was more common, but that time was long ago. Magic items should be really rare and the RAW at the moment doesn't really cover permanent magic effects.

My group and I are from a D&D background so the lack of magic in the setting is something we keep hitting up against. It doesn't help that 4/5 players are magic users, so magic feels common as we have so many casters, but there are still a lot of D&D type tropes that aren't really touched on.

I'm trying to keep consistent with the defined setting, but am not coming up with a lot of information. What do you fine folks do?

I get the feeling Terrinoth is a high fantasy, and magic, while not common, is accepted as being part of the world. There's a whole city dedicated to a university of the arcane. Adventurers are often outliers (in any fantasy setting), so having magic users or divine powers among them is quite "normal" I think.

That said, most day-to-day life is magic free, so no self-sweeping broom in any streets or anything like that (unless you're in Greyhaven, which I can see wizards using utility magic for menial work). People probably look at magic with awe and wonder.

I would make magical items rare, and in the deepest and most remote dungeons perhaps with a feral dragon guarding it. Finding one should be as epic as finding a runebound shard, in such a way that it is almost character-defining.

Compare that to Warhammer Fantasy, where magic is wild and dangerous, people treat it with great suspicion and magically imbued weapon and items are so rare that a missing magical sword was never replaced.