Stealing your "Magic and Chi" names, Lucean.

(Also renaming Adept Mage to Versed Mage or Versatile Mage so the acronym isn't the same as that of Aspected Magician).
@ZeCoster: One issue with your system is that it robs the MA (or AM in your terminology) of the option to initiate for a powerpoint (because the limit still applies).
It really doesn't:
it's easy to remember how many PP you're supposed to have: just add your "Adept Magic"Chi and the amount of PP you got from Initiations together
It doesn't even add to bookkeeping for tracking PP compared to simply allowing PP to be bought post-chargen: instead of writing down your Magic Rating and how many PP you've bought with Karma, you write down your Magic Rating and your Chi Rating. Other bookkeeping is mostly limited to replacing "Magic" with "Chi" for adept powers and certain skills.
Also capping magic like that kind of kills the "Jack of all Trades" concept behind most MA builds that I have encountered.
It allows MAs to focus on their adept side over their magician side, which is something several people, including A4BG, have complained about the current system not allowing. I choose to see this not as "killing the Jack-of-all-Trades concept" but as "turning being a Mystic Adept into a Major-Minor thing, adding more flavor". You could always loosen the limit to -1 instead of -2, though.
Simply allowing for the swapping of spells and Power Points only solves
one problem people have with the restrictions on Mystic Adepts; my proposal solves
three:
- lowering how much Karma you can invest in being an MA/VM at chargen frees up Karma for other things
- tying your Power Points to your Chi rating allows you to get more Power Points as a VM if you raise your Magic post-chargen (by paying 5 Karma to raise your Chi as well, which only takes 1 week instead of [new rating] weeks), and grants MAs a free Power Point if they raise their Chi
- it allows for Mystic Adepts which are focused more on their adept side than their Magician side
Plus IMNSHO it makes MAs more interesting - with a system like that, I wouldn't mind playing one.
Minor side-note, by the way: my name is ZeConster, not ZeCoster.
Interesting question for the pedants under us: under this system, can you initiate 6 times (for aformentioned Magic 6/Adept Magic 4 character) for 6 additional PP, ending at 4+6=10?
I'd go with "highest of Magic and Chi", myself, but people who are actual GMs may disagree, or go with Lucean's idea if they don't mind the extra bookkeeping.