Magic will now charge $100 per hour

Really depends on a) how Magic actually bills (as in, how many minutes do they take for tasks) and b) what kind of tasks you use them for.

Your personally hired assistant won't be there 24/7 and will take way longer for many tasks, since I bet Magic is going to work on having direct and fast overview over and access to as many services as possible. But for many time-flexible tasks (booking trips, managing contacts, small research tasks, ...) Magic isn't so viable anymore.

> This is a perfect example: outright, blatant dishonesty

To give them at least the benefit of doubt. Perhaps they have run this through some form of beta testing and found that?

Or, as you say, they are just using it as a psychological tool.

Had a black (Centurion) card for years. Was underwhelmed. They did very little extra, and even botched the one important assignment I gave them (front row seats to a concert they sponsored). Given that the black card costs $10k/year, Magic starts to look acceptable.