I bet the equivalent of the 'magic is inherently evil' brigade are an Pureblood extremeist sect, who have developed an odd sort of Calvinist theology in which Muggles and Squibs are predestined for Hell, and their lack of magic is a sign of this.

I quite agree re Fudge - it reminds me, if anything, of the Victorian habit of using 'by Jove' as a euphemism for 'By God'. If anything, it might suggest that 'God!' is considered more offensively blasphemous than in Muggle Britain. After all. we have heard Draco use 'God' as a swearword, and while he's the sort of boy who might get a kick out of shocking people with his bad manners and devil-may-care attitude, I certainly don't think he'd display specifically Muggle behaviour...