tenkar
Old School Blogger
It is by default intended to be a flashy, high-magic game, this is true. However, and rather ironically, it is of all the editions the best suited for low-magic gameplay. (The fact that they hired the designer of Iron Heroes to play a major role in developing 4E might have something to do with that.) The Player's Handbook contains a full complement of martial classes, so you can strip out any or all of the caster classes without trouble, and it is likewise quite easy to do away with magic items. Just hand out a +1 bonus per 5 levels to attacks, damage rolls, and all defenses.
Furthermore, there is virtually none of the mind-bending, plot-wrecking magic that made high-level wizards a DM's nightmare in previous editions - and I'm including BECMI, 1E, and 2E in that. (Can't speak for OD&D since I never played it.) Turning invisible for more than a few seconds is a major job of work in 4E, whereas in previous editions you could do it by 3rd level. Free-range teleportation used to be available by level 9; now you don't get it until level 28. And while resurrection magic still shows up fairly early, it's much easier to remove it from 4E without having PC mortality go through the roof.
As regards racial abilities, the only one that seems overtly magical to me is the eladrin fey step. If you don't like that, ban eladrin, or give them some other racial power instead.
As far as interesting out-of-combat options... I'd say 4E provides fewer of those for the casters, but a whole lot more for everyone else. Have a look at rogue utility powers sometime.
Consider me curious... I'll need to adjust my focus next time I pull my 4e rules out. I tend to forget Mearls designed Iron Heroes.