Great question! I don't think it loses it's magical feeling, at least not in my case. Christmas is my favorite time of the year. I think it's because of the goodness that comes out of people. More giving, more caring, and more love is expressed during this season.
I love the holiday movies, the Christmas television specials and the songs that come out at this time of the year. Many of which have a magical feeling expressed with peace, hope and love. It is in those with great imaginations that can listen to the bells and hear that Christmas magic. Like in the movie, "Polar Express" where the boy only had to "believe".
You see I'm a dreamer, and to me, there is still a magical feeling that fills the air during the Christmas season.