Some of my mates are in signed bands and they love to see me do the ol' magic. I've performed for some bands of the genre you mention who are in the process of 'making it' and they were very eager to see my magic too. I've not really had any negative responses from that 'scene' (man I hate that word).
I've found though that it's best to avoid certain buzzwords; much as I hate the word 'trick' seems to get a better response than 'magic' in these kinds of circumstances. If I had a response like yours I'd just shrug it off and move on... not worth bothering with really.
On a similar note, I hate the general perception of magic. I was doing a strolling gig and approached a couple, introduced myself etc. and asked them if they'd like to see some magic. They gave that look, you know the one, and said 'not right now', so I sad goodbye with the usual pleasantries and moved on. What really got me was how everytime they saw me around that same look came over their faces and they'd quickly move off - I hadn't looked as if I was going to approach them, I'd been perfectly polite before, but such was their perception of magicians...