I know this is an old post, but I think you're missing something. If a person from this world were sucked into a world with dragons, xe would have spent xyr whole life thinking "dragons are awesome" and would therefore think they were really, really cool the first time xe saw one, and possibly for quite a while after. Possibly long enough to last until the Generic Evil Dark Lord Guy is defeated.

And second, often, these people don't just live a mundane existence with magic. They're often the Chosen Hero Of Whatever, which makes them much more important in that world than in this one. That alone is better, just like it might be better to turn out to be the secret heir of a country in the real world. (Well, that might have its own problems, but so would needing to fight a Generic Evil Dark Lord Guy.)

Further, if magic is real, not everyone necessarily knows how to do it (or has the right innate talent), but if the protagonist ends up learning to use it in such a situation, that makes them special even to people who have lived in that world their entire lives.

Another thing about the wish fulfillment is that they become heroes and gain a lot of friends, rather than being normal and possibly not well-liked at home. The broader social circle and greater respect is nothing to shake a stick at either. Also, the world might be set up to facilitate one particular dream they happen to have that's impractical in the real world, allowing them to find easier fulfillment.

These things, plus the chance to start all over and make the best first impressions you can, are what make the wish fulfillment fulfilling of wishes, not just the magic. The magic just makes it kind of cooler.