DARRELL'S THEORY:
The array of special abilities usable in the various Phantasy Star games is truly bewildering. Three of four PCs in the original Phantasy Star can use magic spells, while in PSII we are presented with "techniques" that all of the PCs can use, of varying types and effects. In PSIII the "technique" system is preserved, but in drastically changed form. PSIV returns to a much more PSII-like technique system, but also adds in "skills," which include but are not limited to what is called "magic."
So just what's going on here?
Presumably, the "physics" (that is, the natural laws) which govern the use of these special powers has not changed over the course of the 2000-year span which includes the four games. Therefore, something else must be going on.
From the Phantasy Star Compendium (*blatant plug for Rebecca Capowski's translation*) we learn that in the Japanese universe, "magic" is a dominant genetic trait which, therefore, can be either present or not present in people, and that "techniques" are a more "generalized" form of "magic" (invented by Lutz, incidentally!). This is not a particularly helpful response, though it isn't inherently hostile to any evidence from the English adaptation of the games. What it doesn't do is lay out just what magic, techniques, and skills are.
The beginning, always a good place to start, is to determine just where these people are getting this power from. Phantasy Star exists in the same universe as Earth, and people on this planet can't shoot fire out of their hands, summon up whirlwinds, or teleport long distances.
The one difference that jumps out is that the Algo solar system isn't merely a star and planets that came into being by the normal processes by which such things develop; they were created by The Great Light for the specific purpose of sealing away The Profound Darkness. Theoretically, each and every bit of matter and energy native to Algo is part of this seal. In fact, the very air on each of the planets, the space through which the light and heat from the star passes, and the waters in the oceans are permeated with this energy. It is this energy which gives Algoians the ability to use magic, techniques, and skills.
The first kind of these abilities is magic. Magic, as in the Japanese universe, is a genetic trait. Moreover, the kind of magic one can use is also determined genetically, as well as the power of that magic. In shorthand, magic is the power to control one's own inner portion of the seal's energy. Wizards like Lutz are, in essence, "hot spots" possessing a large concentration of the natural power within them. In much the same way that certain Earth-made theories of mysticism postulate that certain crystals and herbs are natural reserves of certain types of mystic power, so do the magic-users of Algo possess this power within themselves. Since the act of magic use affects the user's own body, it is physically draining and can be repeated only a certain limited number of times without rest.
As a hypothesis, those who studied magic on Mota through a formalized process of master and apprentice became known as "Espers," a term which will be used herein for someone who can use true magic. The word "wizard" designates one who has been gifted with an extreme inborn potential for magic-use (thus, Noah is referred to as an "Esper Wizard"...a long-winded but accurate version of the title).
After the conclusion of Phantasy Star, Noah returned to his studies of magic. Determined to fight the evil of the coming millenium, he drew together many of Mota's Espers in a large group, replacing the traditional one-on-one apprenticeship with the training of a group of Espers. One of the products of the Espers' studies, combining many minds together to learn and solve problems, was the development of a type of mystical power which anyone could use: the technique.
The key to techniques is that any Palman, Motavian, or Dezolisian can learn to use them, with study and training. This is because techniques do not draw upon power from within, but from without. Technique use focuses the seal's energy as it is present in one's environment. It is, in essence, a "psychic" act, where the will is used to summon and shape the seal's power.
What techniques a person can use is determined not by physiology but by psychology. In essence, a person's technique use reflects the myriad levels of one's inner nature. Evidence for this theory rests in the definition of the "Megid" technique, which is said to tap into the feelings of hatred and anger. Why isn't Megid a magic spell (defined as a skill in the game system)? Because it draws upon power from outside the user in accordance with his or her own mental state and inner feelings. However, because the power of the technique is wholly external, it falls into a limited set of recognizable patterns. Thus, anyone whose personal psychology leads themselves towards creating fire causes the recognizable "Foi" technique to be manifest.
The third category of power use is that of skills. A skill operates somewhat like magic, in that it is individual to the user. It's also somewhat like a technique, in that it draws upon external power. Essentially, a "skill" is a method by which an individual can channel external power through themselves into a target (which may also be themselves, in the case of a healing technique). Since this process invariably involves interacting with one's own body, skills have a character of individuality that magic spells and techniques do not, and often The end result may be quite similar to magic in effect, but the process is wholly different to the trained observer.
A careful reading of the above descriptions reveals one conclusion that isn't immediately apparent: techniques and skills cannot be used outside the Algo Solar System! Since these abilities draw on external forces, they do not have effect in places where the Algo System's unique energies are not present. Magic, on the other hand, is a force carried within oneself, and can be brought away from Algo.
This explains an apparent discrepancy in the technique system...namely, that Phantasy Star III features a technique system which works quite differently than Phantasy Star II & IV's, and in which many individuals are completely incapable of using techs despite possessing a great deal of training and experience which ought to make them available. The fact is that, just as the people of the Alisa III call robots and androids "cyborgs," what they call techniques are actually magic! The genetic trait for magic use is much more common among "Layans" while it is highly rare among "Orakians" (arguably, *no* Orakians possess the trait for magic use, but I find this unconvincing; Neilast has laid out evidence for Orakians possessing "techniques" in her Theory Index under "Orakians and Technique Usage").
So what about 's cyborg/androids? Are they Espers? Well, no; it's difficult to possess a genetic trait when one lacks genes. What they do possess is internal weapon units similar to those Demi and Wren have which manipulate purely scientific power sources to produce effects which appear similar to those of magic and are therefore called the same thing by observers (in the same way that the natural combat abilities of the Layan biomonsters are called the same name. In other words, the term "Foi" in the dialect of Alisa III refers to a ranged attack made with fire, whether due to a spell, a flamethrowing weapon, or the fiery breath of a Moos biomonster). The common robots can only use one special weapon, while androids possess full suites of them that mimic the genetic patterns of magical learning that are present among the Palmans of Alisa III.
Three notable "but wait!" questions arise from this explanation:
"But wait! How can cyborgs get their techs adjusted at the technique shop if they don't work the same way as in Palmans?" The answer to that is, the tech adjustment shops don't just help Palmans train their use of magical energies, but also are equipped to adjust the cyborgs' weapons suites. The weakness of this explanation is that there are also shops that can do this in the anti-mechanical Layan cities, but in truth, the Layans can't be entirely anti-technological. How would they breed their Biomonsters if not with the aid of technology? Why are cyborg-only weapons available in Layan cities such as Mystoke and Cille? Why are Layan tech-shop operators willing to so much as speak to Mieu and Wren if cyborgs are inherently Orakian and therefore evil? The answer is, Layans do use technology and machines, they just don't favor them militarily because biomonsters appeal to their cultural gestalt (or maybe because they happened to control Alisa III's Biosystems Lab during the Devastation War while Orakio's forces controlled its WeaponPlant ^_^).
"But wait! What about Megido and Grantz?" Megido is in fact the technique known as Megid in PSII and PSIV. Since the Alisa III is far from Algo, the technique cannot be used by Aron/Adan/Sean/Crys throughout the game. It is triggered automatically by his anger and functions because it is drawing upon the only major source of Algoian seal energy present in the Alisa III's environment...Dark Force (more accurately, Dark Force was the source of energy which is the exact antithesis of Algoian seal energy...but it works the same when drawn upon for techniques. Ask any Xe-a-Thoul). When the third-generation hero released Dark Force, he released that energy from beneath the temple, too. When Dark Force was active, the energy was under its control and therefore inaccessible, but after its death, enough permeated the city of Lashute for the hero to use Megid in response to his anger...once. As for Grantz, this is merely another "weapons unit," installed in Mieu by the sages of Sage Isle.
"But wait! The Alisa III came from Algo, so shouldn't its air, water, earth, metal, etc., contain energy for technique use?" Well, yes, and it did...but this power is not a renewable resource; it stems from being near the seal. Only the power within living beings (used in magic) is self-generated and this power can't be tapped by others (see the above entry on Megid to see what I mean) while the person is alive and simply dissapates upon death unless one happens to be a being of extraordinary supernatural power (in which case it takes a while to fade away). Whatever power was in the Alisa III was used up long ago, during the Devastation War.
In other words, yes, Alis was an Esper by blood if not training, and Odin was just born a few centuries too late! ^_^