I am diametrically opposed to this organization, or others conceptually similar. Magic will be so rare that if it isn't fostered but instead persecuted it's likely we won't end up seeing players with it at all on our server, which would be quite a shame. Hunting down magic users would just be wasteful, frankly.
If you can research how magic works, or how some byproduct of magic works, we'll undoubtedly be able to achieve things in the game we never could have otherwise. Even for non-magic users, which will be most of us.
I'll also say that I usually play a mage if given the option to do so, so I'm quite sympathetic to the plights of mages, and I always hate the persecution of mages. It's ignorant and intolerant and, at least for me, mirrors some of the horrors of history.
Though if you were to ask if it makes for good RP or not... I'm not sure. A lot of game producers certainly seem to think so. Personally I think I'm of the mindset that it's a bit overdone. You can see this in game franchises like Witcher and Dragon Age. We even see pseudo situations in stuff like X-Men, and the Marvel universe - Agents of Shield, Supergirl, etc.
Taking Dragon Age as a reference point... I think a situation like the Tevinter Imperium would be much more interesting. Though it also certainly makes sense that in a world perspective that there could be a kingdom or empire of mages, while mages might be persecuted and/or controlled in other kingdoms. It's actually rather mild how mages are persecuted and controlled in Ferelden compared to say Par Vollen.
Caspian has actually dished out quite a lot of info on magic over the years. I won't share some of the hints I've received that Caspian probably wouldn't want posted on the forums, but I can share this:
Out of character - there is magick in Elyria. It's rare, and powerful. It is not something that can be attained. It's something granted by the story engine. There's no quest you can go on to earn magick. It's not a character-building mechanic. It's a story-building mechanic. Most people will not even discover they have magick. And those who do may decide not to use it.