QUOTE (Karoline @ Feb 6 2010, 10:08 AM)

Very true. Though from a fluff standpoint magic is supposed to be rare, which is why it is given more leniency in being more powerful than 'ware. Of course from a crunch standpoint magic isn't rare at all, and is in fact quite cheap.
I think that from the word 'go' magic and 'ware is actually reasonably well balanced, but the cost for improvement via 'wave has massive increases while the cost for improvement via magic has only minimal ones. For example, going from standard ware to beta ware is a 4x increase in the cost, while going from first initiation grade to the second initiation grade is only a 1.3x increase.
At the same time however, you are earning between 5-10 Karma for a run and likely far more than 1000x that in nuyen. So I don't see it as a bad thing per se as the magically active have to improve their magic, gear, skills, and stats. Non-magicals just need to worrry about gear, skills, and stats. Basically, non-magicals have one less category to worrry about improving while earning the same rewards as magicals.
BTW, your initiation formula is incorrect. It's 10 + (3 * Initiation Grade attempting). So it's 13 for Rank 1, 16 for 2, 19, for 3, etc and also limited by the current Magic stat which progresses like any other stat. So that "unlimited" magical power progression gets damn expensive within a couple of increases. I should also add, there's no trade-in value for existing Initiation ranks like there is with implant upgrades.
Whereas going from standard to alpha is 2x cost (compared against standard) but it does give a 20% discount on Essence Costs. You already showed Betaware's costs but keep in mind that it also gives a 30% discount on Essence costs in addition to the other benefits one gets from increased grade 'ware (harder to damage, detect, etc).
Sure 'ware has higher numerical costs, but the accrual rate of money to pay for it is significantly higher than the karmic acccrual rate.