I'd honestly prefer something of a dual-axis spectrum, with x=0 being pure magical, x=10 being pure steampunk, and y=0 being no more, and y=10 being world-bending power at your fingertips.
I'd be somewhere around [2.5,3] on that graph.
I'm not too fond of the steampunk stuff, although I do like realistic technologies, especially when applied in conjunction with some magical effects that would obviously change what would be "realistic" for a given situation. (I really want air quality to be a factor underground, with things like psuedo-magic funguses that can provide air filtration, and vents and fans that you can construct to circulate the air.)
I'm not to big on just having squads of dwarven wizards, but I would like a sort of souped-up alchemy form of magic, where you can create functionally magical effects out of predictable formulas, and producable/farmable fuel and/or raw materials. Combining this with normal production might make for alchemically enhanced metals for better weapons and armor, for example. (Of course, plenty of this can just be plain moddable. If magic is just a bounded scripting language for making scripted effects, we can fairly easily mod this stuff in.)
Likewise, I like having problems to solve more than just plain unlimited power. The ability to make megaprojects like working calculators out of hundreds of thousands of gears and axles and water pumps and switches is a testament to the power of having a few simple "pieces" you can use in complex arrangements to create extremely complex outcomes. Give me problems to solve (like the farming problems, or the social problems, or the like, with simple tools that can be used in conjunction with other simple tools to create complex solutions) that force planning, not just give me the ability to make giant dwarven mechs that vomit lava on invaders.