All right, you remember Yozakura Quartet, right?
The premise there was that magic worked, demons were real. Thus normal, non-magical people wanted all the demon people to live in a ghetto-city set aside for demons. That premise was a very believable approach to urban fantasy. Japanese people can be pretty xenophobic, and one could easily imagine the Japanese government going along with a plan to make demons into the next version of Okinawans – i.e. lower-class people with no money and no political power.
Now we have World Trigger, a show that tries to use a similar premise but fails miserably.