The funny thing is that explicitly avoiding cliché is also cliché.
I think that for dwarves artifact magic should be prevalent. If there was a way for dwarves to use other magics, it should be restricted to a caste very rare indeed.
Other races should not be limited to artifact magic, so whatever system decided should be flexible on that front.
I'd also like more indirect magic, since one of the bigger problems I have in a lot of fantasy games is that there's three basic classes:Warrior, close range attack. Archer, ranged attack. Wizard, prettier ranged attack. Game designer wants people to notice the prettier effects, makes wizard stronger than archer.
I mean, we have ranged attackers as it is, so why build in redundancy? I'd be happier with absolutely no fireball/lightning bolt going on... for that matter, no targeted effects at all. The closest to a combat spell I'd like to see would be some sort of area cast thing, better hope your guys aren't over there, or else !!FUN!!. How about an area cast spell that makes food spoil faster? That'd break up a siege pretty well, once the npcs-have-to-eat gets implemented.
I find myself agreeing with your reasoning, even though I'd love to see spells like
Dragon Slave from Slayers. Magma may solve everything, but sometimes "big, big boom" is much more satisfying.
Aside from attack and debilitating magic, there's also support magic. In a bog-standard RPG these would be things like haste, attack and defense boosts, healing. Healing being the purview of medical skills, this could be limited to accelerating cellular regrowth (but make sure it's not infected first, because bacteria are
also cells). Generic attack and defense boosts are bland, so armor boost, sharpness boost, strength boost, etc. Haste is, well, haste... so...
Outside of combat, there's also enchantment, which is very similar to what I imagine artifact magic to function like, so it would probably be a subset of overall enchantment. I think item enchantment would be very elfy, so perhaps one day elves will show up with enchanted cloth that can aid healing, or resist fire, or resists wear.
To satisfy players that like flinging fireballs and frostbolts around, we already have bolts in the game, so an temporary elemental attack enchantment that could be applied to weapons (or, more interestingly, the ammo) could solve that without obsoleting archers. +Fire-enchanted steel bolts+, anyone? (though I think magma-enchanted would be more dwarfy...)