I'm going to give my honest and wildly unpopular (SHOCKER!) opinion. It is one that gave my own flesh much pain, since I have always loved stories like this. Since I believe the Word of God speaks to it, though, it is not a "gray" area to me.
God tells us very clearly throughout the Bible what He thinks of witchcraft, sorcery, and (as I wrote yesterday) syncretism. Witchcraft is an abomination to Him:
When thou art come into the land which the LORD thy God giveth thee, thou shalt not learn to do after the abominations of those nations. There shall not be found among you any one that maketh his son or his daughter to pass through the fire, or that useth divination, or an observer of times, or an enchanter, or a witch. Or a charmer, or a consulter with familiar spirits, or a wizard, or a necromancer. For all that do these things are an abomination unto the LORD: and because of these abominations the LORD thy God doth drive them out from before thee.
Now the works of the flesh are manifest, which are these; Adultery, fornication, uncleanness, lasciviousness, idolatry, witchcraft, hatred, variance, emulations, wrath, strife, seditions, heresies, envyings, murders, drunkenness, revellings, and such like: of the which I tell you before, as I have also told you in time past, that they which do such things shall not inherit the kingdom of God.
The rest of mankind, who were not killed by these plagues, did not repent of the works of their hands nor give up worshiping demons and idols of gold and silver and bronze and stone and wood, which cannot see or hear or walk, nor did they repent of their murders or their sorceries or their sexual immorality or their thefts.
As Lani declared in the comments yesterday, there's "plenty of witchcraft going on in [LOTR]." And in The Chronicles of Narnia, and in Harry Potter.
Putting ALL FEELINGS aside, all of your "love" for the books and movies, can you really justify putting witchcraft before your (and your children's!) eyes?
1. "But it's CHRISTIAN! It has themes of good and evil! It has a Christ figure!"
First, I highly recommend this article, which goes into greater depth and states the entirety of the problems better than I.
There is no such thing as "good" and "bad" magic. All magic (sorcery, witchcraft) is of the devil and is clearly condemned by God. This takes us back to yesterday's points: is God glorified in the midst of abomination? Does He USE abominations to GLORIFY Himself? Answer carefully.
Rearding themes: Take it from a former English teacher--you can produce "themes" of good and evil in almost any work. You can find a Christ figure in tons of English lit. What does that really mean? Does God sanction witchcraft in this instance, but it's an abomination in others?
God does not change (James 1:17). What was detestable to Him still is. When I realized that, I knew I could never look at The Chronicles of Narnia, LOTR, or anything that contains sorcery the same way. Regardless of how much I 'loved' Aslan. As I distanced myself from them, I began to see other theological problems with them (which are out of the scope of this article).
2. "But I am not participating in witchcraft! I am just watching it."
We must not become neo-gnostics and separate our earthly activities from our "spritual" reality. What we DO, what we set before our eyes, does affect our spiritual condition. We cannot countenance, even approve, of abominations and emerge unscathed. The little foxes spoil the vineyard, and putting a "God-stamp" on witchcraft does not sanctify it.
I pray with all my heart that my brothers and sisters would seek the Lord on this. I pray for discernment, wisdom, and a love for truth for all of us. May the Lord lead us into all truth by His Spirit.
I am not saying, "Do not touch!" to the things that God does not mention. But we ARE to separate from unholy things.
Then I heard another voice from heaven saying,
"Come out of her, my people,
lest you take part in her sins,
lest you share in her plagues;
for her sins are heaped high as heaven,
and God has remembered her iniquities.
No one who practices deceit
shall dwell in my house;
no one who utters lies
shall continue before my eyes.
2 Cor 6:17
Wherefore come out from among them, and be ye separate, saith the Lord, and touch not the unclean thing; and I will receive you.
There's a lot more to say, but perhaps this is enough for now. I know I am treading on many of my beloved family's toes, and I hate to do that. But I hate deception and the tactics of the enemy much more.
ADDENDUM: Holly brought up a great point to me privately that I want to address. I am writing primarily here about entertainment--seeking to amuse ourselves. I am NOT writing about education. I would teach my children about Greek myths, for example. We would study all about what other cultures believe(d), etc. At an age-appropriate time, we'd examine what cults and the occult teach, and how what they teach compares to the Word. That is not my subject here.
I am also not saying that all entertainment is horrible. I do think Americans are obsessed with being entertained, but that's another post. ;-) Amusement is not sinful! But indulging our flesh in obviously sinful images and music is not pleasing to God.
Jodi made a good point, too, that I agree with. There are neutral things--movies, for example, that do not contain things that grieve the Spirit. We must all seek the Lord about how we spend our time and what we participate in; He will never lead us astray. But we must listen to Him, and not ourselves. Sometimes the voice of the flesh is so much louder than the still, small one of the Spirit. We must conquer and quiet the flesh (again, by God's grace and empowerment) in order to hear Him.