Just throwing my two cents on this (also HUGE nerd autism ahead)
About the contradictory between Muud's Technology and Varannari's magic is (in my opinion) based on where it comes from, when you look at the Mage description that's stated "Mages harness great destructive powers with several offensive spells, and in a more limited way, some defensive abilities" which the word harness is defined as to "control and make use of (natural resources), especially to produce energy". which can be assumed that the nature of Magic itself can be categorized as a natural raw energy that can be harnessed by a selective individual.
That being said, I don't really think that the Muud'ari understands magic (the byproduct of the Varannari Continent) at all, not only because of Oracle's reaction towards magical equipment but also that the Ark of Lothasan doesn't have the capability towards magical force in the first place (hence the cause of devastating crash at Ashen Wastes). The main reason of the Muud's equipment is able to increase the Mage's power (in terms of mana) is (along with David's statement) is that the equipment itself is a "container" of raw energy that Mages can harness its raw energy to their will.