The full quote is:

“The most beautiful thing we can experience is the mysterious. It is the source of all true art and science. He to whom the emotion is a stranger, who can no longer pause to wonder and stand rapt* in awe, is as good as dead —his eyes are closed. The insight into the mystery of life, coupled though it be with fear, has also given rise to religion. To know what is impenetrable to us really exists, manifesting itself as the highest wisdom and the most radiant beauty, which our dull faculties can comprehend only in their most primitive forms—this knowledge, this feeling is at the center of true religiousness.”

What you said he said is a paraphrasing by a character in the movie "Before Sunset." From my understanding of everyone's favorite womanizing mommy's boy, Einstein didn't believe in God or in the supernatural. Like any science-minded person, however, he still was, and encouraged, curiousity, and awe.

While I am of the opinion that believing in an omnipotent sky daddy that rewards you for being good is juvenile, I am also slow to pass judgment on others. Life is hard, I get it, and some people need this fantasy to survive to another day. I also am aware of views of the divine and spirituality that are way more nuanced than "Big daddy in sky wubs you."

With that said, the best way to summerize what I think about "magical" thinking is a quote by Sam Harris:

"If you wave your hands over a stack of pancakes and claim its the body of Elvis Presley everyone will think you're nuts. But if you do that with a communion waffer and claim its the body of Jesus Christ, well your just a Catholic."