This "magic of childhood" is something I often discuss with my husband and the question of "How do we make sure our own son's childhood is magical without lying?" My husband has a scientific background and he is.
Elf house on a tree! That would be cute in the garden, especially in the tree over grown with ivy. How about some battery tea lights in the windows during outdoor parties. I hear the fairies/elves whispering "home school project" in my ear.