How to solve the "Magic isn't' useful unless it's overpowered" problem of RPGs?

I still haven't figured out areasonable solution to this problem. I think magic level 1 spells need to be about 50% more powerful than a sword or shotgun to even be worth investing in the "Magic" attribute. Otherwise, you may as well dump Magic and max strength or Dexterity.

However, if Magic gets too much more powerful than physicals attacks, nobody would play a physics based character and everyone would play mages, which is dumb too.

Let's be clear, everything in Square-Enix JRPGs is over-powered, and about half of all spells in AD&D are over-powered. I'm trying to make the game as "internally fair and balanced" as is humanly possible for magic to be.

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I gave each element a "shape" property to its damage-dealing spells, so the 4 elements are no longer just "pallet swaps" of one another for damage type, but rather they are each different mechanically.

Earth: extra damage and +1 difficulty check to enemy magic evade.
Fire: Hits a 3x3 grid, but hits allies too.
Lightning: Hits in a straight line, but hits allies too.
Ice: Freezes a single target for 1 or 2 rounds based on spell level.
How to solve the "Magic isn't' useful unless it's overpowered" problem of RPGs?
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