There is a bit of magic circle. It is what prevents me from opening the developer console and cheating by enabling no-clip. It also makes me attribute value to winning or loosing, or breaking character (as Thomas alludes to).
Zimmerman recently wrote an article on Gamasutra (
here) where he voices his frustration that his 'magic circle' usage had been taking on a bigger life. He even voices his exasperation at that every single student writes an attack on the magic circle even though it is never defended in the way of one binary magic circle.
I think there is a different reason as to why games have less human-enforced rules; they are usually systems in which the player fights/puzzles against the system; the player
cannot subvert the system, because subversion is how he wins and failing to do so makes him 'loose' and resets the game. The player can never come to any agreement with the game, in that way. The system wins as long as it wants to be defeated; and the system looses when it asks the player to 'pretend to be Nathan Drake' as the player never before had to 'agree' anything with the game.
I agree the magic circle was plucked from Huizinga - I even feel that ever essay I read that quotes Huizinga does not strike the same tone as Huizinga did. A different era, perhaps, but certainly a different way of thinking about things.