Maybe the idea is, technically, Garen isn't doing "magic". "Active: Garen calls upon the Might of Demacia to attempt to execute the target enemy champion, dealing them magic damage, converted to true damage when targeting the Villain." He prays (that animation / cast time) and his G-d strikes with a "bolt from the blue".
Firstly, ideally, he is doing True Damage.
And for the purposes of LoL, damage done by Divine Agency is "Magic Damage".
The Reason why Garen Ult does Magic Damage actually has more to do with Game Balance.
Anyway, the dichotomy of beings and creatures who abhor magic, yet do use some magic (or ARE themselves magic) is not unique in fantasy. The Centaurs of Xanth. Garen winds up doing magic in other incidental ways, like Grasp of the Undying, and Deadman's Plate.
Philosophically, none of his magic damage scales on Ability Power. Maybe this is the real distinction: Magic may sometimes be required, but the accumulation of magical power must be resisted.
(Presumably, Garen's sword is also magical, and the basis for his Courage active (his armour?) may also be.)