I like the idea of a lot of little special events and extras. But see, I'm a Florida Resident Passholder. So this is the kind of thing I've always wished they did more often. Things that really help "reward" locals as it were with a lot of new things to do throughout the year. Not that non-locals can't enjoy them, but I'm jealous of how much new and different changes Disneyland's Passholders get to enjoy. So I think it's a nice way to drum up some interest while at the same time, offering new experiences for Passholders.
The name to me is fine. I think of something like Cinderella's transformation until midnight - that was "limited time magic." I don't think the name implies there's no magic in the park, just that there's some extra special bits of magic that won't last long.