I've definitely noticed a growth in this sort of setting lately (and a deviation from the standard "Medieval England" setting in general). I think it's really interesting to introduce varying levels of technology and see how they interact with magic/other fantasy elements. I personally can get a bit carried away playing with "What if?" scenarios in my head ("Well, if this culture has pocket watches, then what about other clockwork mechanisms? Do they have wind-up toys, music boxes, robots?"), but sometimes that's half the fun.
In the series I'm writing, magic used to be commonplace in the main country where the story occurs. Some technology (like firearms) never developed/never got used because there were better alternatives presented by magic, other technology arose that integrated magic in some way (like alchemical lamps). Over the past couple centuries, though, the ability to use magic has become diluted due to mingling with other cultures. Currently only about 40% of the population has any sensitivity to magic at all, and all but about a fourth of those (10% of total population) merely have what's called a "relic," some small magical trick they can do that's good for parties and not much else. The few who are still strong magic-users are typically trained for combat, leaving not very many of them to deal in craftsmanship and the like.
Necessity being the mother of all invention, the decrease in magic has led to an increase in technology that would be found in our own world. Some of this has been developed within the country, while other things have been introduced from outside, non-magical societies. Firearms are one of the things mostly brought in from outside, which means they're rather pricy and typically only owned by rich individuals. This has had some very interesting political implications both internationally and within the country itself, which have in turn influenced the plot in a number of fun ways. It's a lot of work to do properly, but the end result is so very much worth it.
So, all of that to say: Yes, I'm writing in that sort of world, and I love it.
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