One of the most interesting role-playing games out there is Mage: The Ascension. This is part of the World of Darkness, a shared world that dates back to the peak-Trent Reznor years of the 90s. The game centers on magical warfare between different camps of wizards, so obviously it's in the fantasy zone. But what's most interesting about it are the ways it's grounded in reality.
To begin with, there's the actual practice of magic in the game. You can't actually, for example, just point at someone and make them disappear to Elsewhere. People who have been doing magic for a very long time might be able to do something like that, but player characters start out as newbies, so it's out of their league. Besides which, big shows of force are called "vulgar" and the universe tends to punish them. So what the player's character actually does is a variety of small rites and procedures that may influence things in a supernatural way, but not so's anyone would notice.
Morality is relative, but the mages most aligned with "good" values of freedom and equality are in the Council of Nine Traditions. The Nine Traditions are aligned but varied. There's a shaman tradition, a witch tradition, a tradition that draws on the beliefs of Western religions, and a couple of "magic from science" traditions, for example.
The players on the other side(s) provide the second dose of realism. While the Nephandi are the most evil and the Marauders are probably the most dangerous, the most persistent opponents are the Technocracy. Descended from the groups who first invented money and agriculture, among other things, they've made their form of magic so commonly accepted that it just gets called "science" and "technology." The technocracy can be represented by telecoms who've vanished phone booths so that their mobile phones will have a place in every pocket, and pharmaceutical companies who can "treat" any idiosyncratic belief with SSRIs.
Are corporate America and the tech world literally run by sinister warlocks with a tight grip on arcane powers. No, I don't believe this. Again, not literally. But on another level, maybe? The COVID panic felt like something akin to the Technocracy flexing its muscles.
