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The difference being, to me as an audience to your magic, is that I know that I'm being deceived and still delighted by it.

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Well said, and point taken.

To add to GP's point, telling the audience they're being deceived makes the trick even harder to pull off. I'm sure many will run along with the trick, but some people like me will keep an eye on suspicious moves and, as GP said, still love to be deceived even when paying attention.

That's why I love up-close magic tricks and loathe magician TV shows full of cut shots and stooges in the audience.

EDIT: Either Criss Angel or Dynamo just downvoted me! :P

This is one reason I love Penn & Teller. They never insult their audience by claiming to actually have magic powers. It's hard to beat their cups and balls trick using clear plastic cups while explaining exactly how the trick is being done, yet it's still almost impossible to follow the sleight of hand for most people. It's so impressive.

Being deceived ~= learning, which we crave.

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