Blantyr - Yes, you're right that Tolkien without magic isn't Tolkien, and Elves aren't Elves. However, I'd say that most of the time their magic just radiates from them without them preforming anything. For example, Gildor didn't do anything noticably magical, but the Hobbits felt it.
Sometimes their magic is more evident to a reader (like flooding the Bruinen or Galadriel's mirror. Or even Legolas' ability to sleep on the run). But the day-to-day magic is, as as said before, subtle. You don't necessarily notice it, but it's there.
And talking about RPing in an inn, to emphasize the magic, other characters have to react to it. Like Al reacted to Elin - even though she is only a woman of Gondor (but they are also noted to have this radiating something).
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You passed from under darkened dome, you enter now the secret land. - Take me to Finrod's fabled home!... ~ Finrod: The Rock Opera
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