However, with a very small amount of gold, more gold than it would cost to do half the stuff they do, they could learn a spell. There's a mages guild in every city, not to mention a chapel. Both places have spell casters.
The everyday citizen may not have it, but they could easily acquire the services of a mage by yelling out of a window.
I see your point, there would probably be a little advancement, but unless Mages and Non-Magical People start fighting, there won't be much.
Adding my edit here since you guys replied whilst I was editting.
. . .Additionally, no one seems to be considering the cultures which are less magically inclined. I doubt there are alot of mages in the Nords homeland, or the Orcs, or even the Red Guard. While I'm sure there are a few, it seems unlikely that magery would be as integrated into their cultures as it was in Cyrodiil or Morrowind simply because it's not really a primary practice of their people. These races would almost definitely be developing newer technologies; especially those which mimicked magic if for no other reason that to counter the use of magic on the battlefield.