I am sure mouser will comment on this soon, but let me just say that it's nice to see the author commenting here

.
Looking over this thread, it seems like the people who commented were mostly regulars (1k+ posts) and certainly not to my knowledge affiliated with any "competitors". What you have seen here, I think, is the gut reaction of people who have been working with software for a long time, and who have seen a terrible lot of "bootstrap sites" claiming to do "magic"

.
Now I have not tried your software, and I have no idea how it works, so I can in no way comment on the technical merits of it -- but please understand that they are not trying to spread FUD, but merely telling people to be cautious when it comes to "magic" on computers. If you've seen the amount of banner ads that claim to clean your computer and make it faster by "magic", you know that this is generally speaking good advice

.
At any rate, I think it is great that you found your way here, now we can (hopefully) have a real discussion about your software.
As I said, I haven't been a part of this discussion, and I haven't tried your software so I cannot comment on it -- however, I do feel I can make a comment about point 1:
1. The Product Name
Unfortunately, the domains magiczip and zipmagic were both taken. So was rarmagic, but magicrar was available. Since the product's shell namespace integration is unique, there was no clearer way to communicate this than to append or prepend the phrase "magic" to one of the most commonly recognized archive formats. There are countless utilities with the name ZIP, and by your reasoning you should go and flame them as well for cashing in on the "ZIP brand".
-simonking
Zip is an open standard (and has been for a long time), which anybody can implement. Rar on the other hand is proprietary software. I would say calling your software MagicZip is akin to calling your stylesheet editor MagicCSS, or your image viewer MagicJPG. I.e. there is no commercial interest behind the "ZIP brand" anymore (if you call your software MagicWinZip on the other hand ..

).
I assume you have somehow cleared your use of the name with the people behind Rar -- it doesn't look like you licensed their compression technology, but rather use WinRAR as a plugin if installed?