Just get some history books and run a Dark Ages type game. Dark, gritty, brutal, no magic except for superstition - but don't tell them that.
I prefer magic in my fantasy, thank you. Gnomes don't have to exist if no one plays them. I also have to agree with Thorin that I don't think anyone has done high or even medium magic. Sure there's all this magic floating around and powerful wizards, but no one seems to take effect of magic into account.
If companies cater to the lowest common denominator, it's probably because it works. Films that I've never heard of win all kinds of awards, but they're generally lame artsy movies that gross about $20. The reason it's called the lowest common denominator is because it appeals to the most people and thus will probably sell more.
Most "serious" novels aren't fantasy at all, so we should take all magic out of the game, set it in the modern time, and focus it on romance, detectives/police, lawyers and doctors.