I was playing Magic Carpet earlier and then I ran into this:

https://www.indiegogo.com/projects/arcane-worlds-tactical-fps-with-flight-and-magic

It's only alpha now. But it looks like it could be great. Unfortunately it is not getting a lot of attention yet.

Here's a video of the wacky crap you can do with water:

There's a playable demo I forgot to mention:

http://ranmantaru.com/games/download/AWd

The demo is a bit heavy on the bird fights. You might even call it a "bird game." But you can activate the cheats to try out the more powerful spells to get an idea of what the full thing would be like.