I think the assumed “distaste” in fantasy elements is from a standpoint that there are multitudes of projects/releases/stories/etc. that have been including magic and the like to the point that it just seems like everything has them these days. It’s made it a bit stale of a genre/concept (at least according to those that have this opinion), so it seems like it’s more of a wish for diversity of scope than anything else.
More importantly, I think it’s a case of how well the entire things are done - if you produce something great and/or unique, especially in its use of fantasy or supernatural concepts, then it’s probably going to be well-recieved, even though it contains those elements. Like, if Avatar: The Last Airbender came out for the first time now, I think it would still blow people away and be well-received, despite the “nose-turning” you’re describing.
It’s kind of the same thing as people complaining about the focus on/overuse of (European) medieval fantasy - sure, a change up to other cultures/eras would be fine and welcome, just like wanting some non-magic/supernatural fantasy is fine for the sake of having options, but there are still niches that can be told using that same genre setting that we’re used to that still produce wildly different products/end results.