I rather like the idea, as long as it's not treated simplistically, or as "magic good, technology bad" (or vice versa). What would guns actually mean for the economy, and how would people react to their traditions being all upset (especially nobles who now have to worry about a peasant popping a cap in their ass)? And, conversely, how do magic & technology manage to coexist peacefully? I wanna see people with magical plumbing and food refrigeration, dammit.
My story is a bit different to the extent that there was a super technological society (future US) that basically blasted itself back to the middle ages with quantum bombs, which changed the laws of physics to make magic possible. So you've got people running around with swords and bows, people who've found caches of ancient machine guns, and people who blow stuff up with fireballs.
As for published stuff, I'm currently reading the Saga of Recluce by L.E. Modesitt Jr, which at some points in the history has magic coexisting with firearms and cannons, as well as steamboats and once even a steam powered car, basically. And one of Brandon Sanderson's later Mistborn books (of which it'd be nice if he'd write more) has firearms being developed in a magical world.
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