I don't really see how it's inherently silly. Sure, over the top, but there's plenty of good stories that have over the top things in them. It doesn't make conflict impossible at all, definitely, given what most things with over the top stuff in them end up like.

This is a setting with magic and technology, we could use the magic to do more crazy things then just power ships and guns or whatever. As of now it just seems like we'd be doing generic sci-fi but calling the power source for things "magic" instead of anything else.

Why not have magitech swords designed to take out space ships? It's magic, you can probably figure out how to do that. Why would having the ability to shoot giant lasers from magitech staves be a bad, "silly" idea? Why not have huge wave motion guns from ships using magic, and using magic to empower your body so you [i]can[/i] do things like damage a satellite by punching it.