Magic vs. Power

[obloquy]

Magic in Middle-earth is the ability to manipulate unseen forces of nature. The 'natural ability' part of the Elves' magic is that they have a stronger connection to nature and the world than do Men, which is one of very few distinctions between the two races. The Ainur have an even stronger connection to the unseen fabric of reality because they played a part in its creation. Think of a computer system: the programmers know the system intimately and can thus manipulate it to the maximum possible degree, and on a level beyond the Graphical User Interface. There's also a learned aspect to Middle-earth magic, because this ability to manipulate reality is available to everyone if they only develop it. Of course, the availability doesn't do Men much good when they have such a short span to develop this power, and when their connection to the fabric of reality is rather puny. So the magic wasn't given to Elves, it was just that Elves had the right stuff to learn it, and plenty of time. The Ainur played this or that part in the creation of the world, so their influence over a certain type of physical creation is the 'unseen force' I mentioned. Melkor put his fingers in nearly everything, so nearly everything can be manipulated for evil by those who know how to invoke the Melkor element. Ulmo was the God of Waters, so doing 'water magic' consists of learning to call upon that little bit of Ulmo that was in the water of Middle-earth. That's what Elrond did. It's just about 'knowing the language' of the spiritual aspects of creation.