1. Some users (0.1%) just don't ever get the email. We tried sending from our IP, sending from MailGun, sending from PostMark, having a multi-tier retry from different transactional tools. Still, some people just will not ever be able to log in.
2. People click old Magic Links and get frustrated when a 6-month old link "doesn't work". We've decided to remedy that by showing them a page that re-sends the link and explains the situation (like Docusign does) instead of an error message.
3. People will routinely mis-spell their email and then blame the system when they don't get the code.
All of this still results, I feel, in way fewer support tickets than the email+password paradigm, so I'm still in favor of Magic links.