The magic provided by Disney has always been providing stories and experiences to consumers showing their heroes' (and villains') adventures in the most wonderful ways technology can provide. As the arts develop and methods of creating motion picture films become more advanced, Disney's story-telling becomes more encapsulating to its audience. While older fans may yearn for the older styles of animation and classic Disney harmonies, newer generations will still have their own Disney magic to grow up with as well as experiencing the magic of older disney too.
Many children and adults still love Disney and the Disney parks. To these people Disney is magical and creates magical experiences through movies and through the theme parks. The beloved characters and amazing adventures that people are able to go on is one of the ways that Disney still creates magical experiences.
No, the magic created in productions like "Chitty Chitty Bang Bang" is a relic of the past. There was a time when the talented entertainer brought the screen to life. Humor and excitement were produced by stunning songs and dancing. The magical experience was induced through upbeat lively behavior and personality. Disney was a connoisseur of the finest personalities in entertainment and brought them together with magical scripts. Now the technical aspect of movie production has taken over. We watch animated characters and predictable plots and although much of it is stunning, it is not magic. Magic happens when people actively engage in joy. Without the high energy theatrics of talented individuals like Dick Van Dyke and Sally Ann Howe, we just do not see the magic that once was created by Disney.
Disney does not create magic for kids. They have an image problem with employees they hired at their resorts that might endanger kids. In addition there are other media companies that create content for kids. Finally, Disney resorts are not magical for kids whose parents could never afford to take them there.