Yes, I know it's not easy to get a steampunk game right regarding the magic thing, but we're still in the beginning of the game design so any input is welcome

I think there could be some magic in form of potions? I agree that "spells" would be weird, but potions, a bit like alchemy I think is fine and fits a Steampunk game. That's my opinion of course

or some stuff like ninjitsu, smoke bomb, poison, and such. Of course it cannot be "completely realistic" because of the healing/buffing thing, but no "fireball" or "lightning strike" for sure

.
We're going to include mechanical/robotic/weird devices, and have long range and melee weapon types.