To keep DR/Magic competitive, and add a bit of flavor to the game (as I prefer varying levels of magic) I have DR/Magic run in 5 point increments per "+" of weapon.
Example: DR 10/Magic requires a +2 weapon to bypass entirely. A +1 weapon bypasses 5 points of it, leaving 5 points to be "absorbed" by the DR. This encourages putting just standard "+1-5" enhancement bonuses on, rather than a +1 this, that, the other, and the red haired stepchild effective enhancement bonuses.
So a +5 weapon can shear through up to DR 25/Magic. That sounds about right, as I can't really recal any critters with DR 30/Magic in 3.5. If there are, they should be meant to be ridiculously nasty.
YMMV
Creative Director
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Altering DR has more impact than game balance. It impacts flavor. Monsters don't idly have the DR types they have; all demons, for example, are susceptible to cold iron, while devils are susceptible to silver. DR/adamantine is generally withheld for monsters that have super hard skin, like golems. And so on.
DR/magic may seem like it's meaningless in high-level encouters, and while I do agree that it's one of the easiest DRs to get through... I wouldn't alter it when it appears. Sometimes, adding DR/magic to another DR type can make things even more difficult for PCs to handle, such as the case of something with DR/magic and cold iron. That handilly defeats the PCs who carry around nonmagic cold iron weapons to defeat that type of DR when it shows up. Also, remember that most summoned monsters don't have magic attacks. DR/magic really shows its strength against PCs who rely heavilly upon summon monster and summon nature's ally spells.
Though, I have to say I like Black Bard's solution.
Frankly, that was one change from 3.0 to 3.5 that I did NOT like. They should have kept the DR/+x, instead of reducing it to the useless DR/magic.
I agree that DR/magic remains useful at all levels of play. In the Age of Worms AP, my brother had a PC who had a cohort that was a duskling totemist (Magic of Incarnum), focusing on making multiple attacks using the girallon arms. Before he figured on giving her an amulet of mighty fists (or something like it), she still had to deal with DR/magic snuffing out much of her sick damage.
Likewise, a character in the STAP is playing a knife thrower, focusing on throwing absurd amounts of knives in a round. If DR/magic weren't involved, his daggers at high-level would shell out phat damage (with the right feats, etc). However, since it's hardly economical for him to try to enchant/buy all magic daggers, this acts to balance his character throughout the course of the game.
This was one of those changes that I hated when 3.5 was introduced, but I tried it and now I like it. DR/Magic isn't supposed to be a big deal anymore, that's why the real nasties like devils and demons have material DR.
I play a high level summoner in another campaign and let me tell ya, DR/Magic sure takes the bite out of my summoned beasties.
Huh. I guess I just haven't played/played with a summoner enough to be exposed to their strengths and weaknesses.