I enjoyed reading your essay, and I agree that we shouldn't cross that very thin line that we so often walk. However, I don't think we should call each other out in most instances. For example, if it is simple someone's character that they claim to have powers, that is fine to me, but it's when they take advantage of people for personal gain, wealth, and fame when I think we should call them out and put a stop to their nonsense.
For example (again), if a magi has a character that he likes to live all the time, and claims that, as his character, his "powers" are real, but he is not gaining from it, or taking advantage of it, I honestly think that's fine... that's just his performances style.
However, take someone like Sylvia Brown. She says that she can help the FBI with her "psychic powers" that are supposedly real. If she's so confident in her powers, why does is she constantly hiding from James Randi? Because she's a fraud, and she knows it. The said thing is, she has everybody else convinced that she can see how people are murdered, where they are murdered, and even who murdered them. She is taking advantage of people, and this is wrong! Yes, I realize she is not a magician, but I was just using it as an example.
A funny story that I wanted to mention that has to do with Sylvia Brown is one from my Elements of Culture person. We were supposed to find someone that we thought was a "Renaissance Person", and a girl in my class chose Sylvia Brown. She went before, so in a spur of the moment kind of thing, I crumpled up my paper and did an oral report on James Randi. I wanted to let the poor girl know that Brown doesn't really have powers, and that she is a fraud, so I told them that she runs from Mr. Randi. That is a real life example I have of people being taken advantage of by someone who claims to have "powers." I know, it was kind of off subject, but I felt like telling a story.
Good essay, though... it was a fun read.