Of course, the Immortal Elves were still around to have fun. Buttercup was apparently summoned long ago. And there was the Fourth World stuff, as well. One of the books (Dragons of the Sixth World, maybe?) also suggests that some reports of dragons might just be actual dragons that got up for a snack while hibernating. While magic wasn't possible for normal metahumans, for beings of sufficient power, it could be possible. The down side of the cycle didn't mean that there was no magic, but that mana levels had sunk below levels where all but the very most powerful could express it. The tide is rising now, which means more and more things are being affected.