Righto, I freely admit I skim-read the thread so far and don't readily know if I'm repeating someone else's sentiments or not, but here goes.
Between playing a lot of D&D and reading my fair share of fantasy novels, the conclusion I've come to is that Magic in fantasy settings largely takes the place of Technology (yes I'm capitalizing them) because Magic:
a)is more readily understood by the denizens of said fantasy world, and
b)covers the pitfalls and problems that Technology has developed to deal with in reality.
Taking an example from D&D, the Remove Disease spell. Low level healer type raises a holy symbol and asks nicely, and BAM! Your diseases are cured. Cancer? Cast Remove Disease. Small pox? Remove Disease. Tapeworm? Dysentery? Foot fungus? Hand wave and it's gone. We have no idea WHY, but who the fuck cares it works. Why would a society with ready access to something like that bother with developing modern medicine? That's just a waste of time and effort at that point.
Looking at warfare becomes another issue of "why bother". Sure these fantasy people could spend time developing firearms and ICBMs and the like...or they could just cast some spells on their cannonballs and arrows to make them shoot further, more accurately, and make them explode in fancy ways on impact (or worse).
Construction crews? Who needs those when we can hire someone to come and make entire walls of iron pop into existence and then meld the shape of the walls into a sturdy and convenient fortress? Food shortages? Make that shit pop into existence by willing it. Need labor for larger projects? Fucking golems have you covered and you don't even have to pay them. There's more examples (and they get much sillier), but when a Wizard or Cleric in your average D&D game is the equivalent of a trained professional or a doctor, it's no wonder there's technological stagnation. The innovation and drive that spurs us to create more and more advanced Technology is dependent on there being problems that we know we can solve but haven't figured out yet. A lot of fantasy worlds don't have that issue because the answer to every problem is "needs more magic".
With that in mind, and given the kind of advantages Magic could offer, I would totally go with Technology. Magic may be great in the short term, but it also has a tendency to go horribly, horribly, catastrophically wrong for no real reason other than "fuck you Wizard". Technology fucks up too, but it a)fucks up reliably so we can figure out a fix, and b)usually doesn't fuck up to the point where it threatens more than a handful of people. There are exceptions mind, but by and large when something Magical fucks up it fucks up a whole lot more in much worse ways.
TL;DR: Sees the advantages of Magic, picks Technology anyway for overall survivability in the event of nonsense.