Re: How does your world handle Magic/Psi?
I guess my world is much like the Marvel/DC universe. The general public know superheroes, super-science, aliens, other dimensions and weird terrestrial species like the moloids (mine are called the Sub-Men) exist, but don't believe in ancient gods, ghosts and magic. The PCs defeated a J-horror ghost early on in my campaign. They didn't call it a ghost at the press conference though, I think they termed it an 'extra-dimensional entity'.
You have an interesting idea there, of a secret world within the standard superhero universe, it does look quite V:tM-y. Ultimately though aren't capabilities much more important than sources? If a crazed loon is flying thru Manhattan destroying buildings with his energy blasts, then does it really matter whether his power source is magic or genetic engineering? Either way the authorities will try to stop him.