Superstar
I have never really looked at my music players as magical, but that could change with the Genie MP3 player. The Genie is designed to be magical, playing music coded to different mood settings.

The Genie was designed by Jiyoun Kim and gets its name from its unique shape, which is designed to look like a (surprise) magic lamp! According to Kim, the magic lamp shape also eliminates the need for speakers, as the sound coming out the Genie radiates outward at what I assume is a loud level.

Add a remote control and iPod connectivity, and the Genie MP3 player is looking like a winner. You can see a conceptual model of the Genie here, along with a ton of other MP3 players both conceptual and actual.