[DnD]Magic and Psionics

[Ancient History]

Magic is fundamental, a staple of fantasy fiction.
Psionics is less robust in fantasy stories, being seen as more scientific and hence seen most often in science fiction.

Some stories combine magic and psionics <see Steven Brust's Drageara series>, while in others magic IS psionics.

What do you think of the following:

Are magics and psionics transparent?
(i.e.If you cast a detect magic spell, will it pick up psionic activity in the area? Naturally. this doesn't include spells that target psionics, such as

Sapphire Psionic Shield
Abjuration
Level: Sor/Wiz 3
Components: V
Casting Time: 1 action
Range: Medium (100 ft. + 10 ft./level)
Target: 1 creature
Duration: 10 minutes/level
Saving Throw: Will negates (harmless)
Spell Resistance: Yes (harmless)

You shroud the target in a flickering, heatless, sapphire-colored aura that lights up the target with weak radiation equal to only half the illumination of a normal torch (10 feet). This aura protects the target against possession and mental control exactly like a protection from evil spell. The target also gains a +4 resistance bonus to saving throws against all mind-affecting effects and psionic attacks.

Should magic and psionics be combined?
I don't have any good examples of this at the moment, the sole example I know of is the "Mind Mage" prestige class in Dragon Magazine #263(?). Basically, in a ten-level prestige class you advance 8 arcane caster levels, 8 manifester levels, and get some keen extras. Plus, the interesting psi-spell feats, where you trade power points or spell slots to increase psionic powers or spells.

Are monsters less fun with Psionics?
Is an Illithid the same with just spell-like abilities?

Do you think magic could BE psionics?
For instance, when your character is created, could you declare that his "spells" aren't powered by magic at all...but by psionics. The ritual of the spell allows him to manifest the effect.