I am having the same problem, played the game for 8 hours, visited every shop, killed every guy I came across and I never once saw a single wizard or any magic being used. I also didn't see the sorcerer class that was claimed to be available in character creation. Sounds like a cool mod but something must of been changed in the latest version that messed it up.
As for spells,
Raise dead , maybe a spell that raises the people who died in combat. You could limit it to target bodies or raise anyone within a certain range of you, or just raise them all.
Haste , a spell that increases your run speed to mount speed for a 30-45 seconds.
Evac , A spell that lets you escape any fight , even if enemies are nearby.
Deaths Embrace , a spell that kills whoever it hits, or you could make a spell that kills everyone around you within a few feet.
Leap , A spell that increases your jumping distance and height so you can jump large distances , like over rivers and such.
Oh and did you ever think about using the different attack directions to cast spells. So each direction you attack with the staff will cast a different spell. So you could assign multiple spells to each item.
Also for the sorcerer class you could make it so the players unarmed hand attacks could cast spells perhaps. In each direction he motions his hand he does a different spell, and you could bring this further by maybe the gear he equips. For instance you could make gloves that when equipped, change the spells cast by his unarmed hand gestures. So the player could customize their spell base by their gear equipped.