Wouldn't systems like this put a lot of trust on their users? Say you use a magic link on an compromised wifi network, like in a hotel, coffee shop, airport and so on without being on a VPN. Which some users will inevitable do.

I completely agree with the "most use cases" though. As long as you can't change the associated e-mail without additional requirements.

No I won’t log into my email multiple times per day because you are too lazy to hash passwords.

It always depends on the audience but if your users are somewhat technically literate you need passwords.