There's also the school of thought that its dishonest to pretend you have real magical abilities and therefore you don't have to simulate real magic, instead treating it as the performance art that it is. Most people know its a trick and don't mind that its not totally believable. That said, you're probably right in that your way leaves a more lasting impression.
Re: youtube, magic is a really bad art for video, IF you're the kind of person who only enjoys magic if it baffles you and once you see how its done (even just partially) then it gets boring and with a video, where you can watch it 100 times, in slow motion, of course people will always see something they shouldn't. Sadly these people often see it as a challenge (I find the "pretend to have powers" magicians are largely at fault for this, IMHO) rather than as a performance art. Oh well.
But those are just my thoughts, I'm not a professional and have never performed for money or in front of more than a handful of people, so you know a lot more about it than I do!