Here's my thought on the magic issues and the things around it.
On making Sages occurrence lesser. If we are simulating a game similar to Middle Age, have we past that Witch Inquisition Age? Since we have village folk hunting down Sages, we might as well have something similar to Inquisition time, think before 19th century in real world. Where Sages/Witch are hunted down and become lesser to be found by adventurers. That could be good reasoning and argument if any.
On magic on EC. I wondering whether we can apply the same "carry too many scrolls go off on Belu" code to EC. Then we will have a lot of accidents with scrolls
I'd also prefer an approach to this magic 'problem' in the EC, that is taken IG.
If certain realms or characters don't like magic, they could have the option to hunt down the witches and or sages.
Invest time and gold to increase the chances of witches present in a certain region getting 'removed' from the continent.
Perhaps make it an option for every estate to do this, so knights and lords alike can choose to invest in less magic producers.
Also, if i understand correctly, if Magic is illegal in the realm and it is cast by someone, he or she wont be identified?
Perhaps add a certain chance that characters will get indentified so a Judge can deal with it.
All tools for IG solutions to the problem.
Certain cultures or realms might choose to actually promote the use of magic while others hunt it down.
This gives extra incentive for conflict.
Also, hunting down witches in only a certain area will effect the rest of the continent too, as these characters travel around.
It might be hard to balance though.