As it happens, I'm a member of the Society of American Magicians ... most magicians will tell you that the psychology of perception and the manipulation thereof is an important part of the craft. Personally, I use "magic" as a way of teaching the scientific method to grade school kids ... present an illusion and then guide them through the process of observation, hypotheses (including null and alternative), methods of testing, and conclusions. Works great!

Never had the patience to be a magician but I've used converted and stolen science many time.

I love the Mobius Strip to make people think and I've used Magic Milk more than once to show people how easy it is to fake psychic abilities.

(When I do it, I secretly put the dish soap on my finger, utter a magic word, and dip my finger in while telling them I'm using my psychic powers.)

http://youtube.com/watch?v=k5HFdrheodY