[chrispenycate]

I don't see why the situation would necessarily cause social conflict. Through most of human history society has been based on the inequality of its members, without anything like as much evidence to demonstrate this inequality.

Some of the longest lasting and most stable socities had well defined caste systems, and they didn't generate frequent rebellion.

The idea that all human beings are of equal worth is relatively recent, and frankly doesn't seem to give a great stability to a community; "if I'm as good as him, how come he's got more than me?"

I know it's fashionable to assume democracy is the optimum social system but for a peasant, at least, (possibly not a serf) the ability to plan ahead, assuming nothing major will change is an advantage outweighing a lot of votes and rights.

Does the magic get used for practical purposes, or is it essentially wasted on luxuries?