Technically, there still is divine magic. Unfortunately, only the servants of the Enemy (Izrador) have access to it, through the pseudo PC class in Midnight called the Legate.
You are correct that feats grant access to spellcasting. Any pc with the right feats can cast, they just can't do much of it as they will be severely lacking in Spell Energy (point system instead of slots). The base class that really supports spellcasting is the Channeler. They gain free spellcasting feats as well as accumulate Spell Energy.
There is still magic healing in Midnight. The basic rule is that all spells are available except those that appear solely on the Core Rules Cleric spell list. So if your Channeller has access to the Conjuration school, then you will be able to cast the Cure Spells because they also appear on the Druid's spell list. The high powered healing is only on the Cleric list and so only Legates can cast it.
Most if not all of the 'flashy' magic is unavailable until higher levels. Teleportation of any kind is unavailable. In short life in Aryth is rough. I haven't even mentioned the Astirax and how they can ruin a spellcaster's day.
Magic is around, its just rarer and in general less tacky. Check out the Midnight d20 yahoo group. Join and ask a question, you'll get an answer to whatever it is very quickly.
Anyway, hope this helps.