[quote=GreivousKhan]
it also makes technology that does not channel magic useless eventually. Though one loop hole is a magic sword would work fine, since it is a blend of magic and technology. Albeit, not a very advanced form of tech.
[/quote]

I think you could probably work around anything like that, if anything the residual magical energy in the air would just super-charge any technology for a while, albeit probably with some corrosion or other limitations.