I realized that in my previous response I was vague if not out right responsive to specific questions you had asked. Allow me to be a little more direct with this reply.
How much does a career in magic actually pay for most people?
I've heard it said that you may not make a million dollars but you'll live as if you had it.
I'm beginning to feel quite discouraged. There are hundreds of thousands of magicians in the world...
Quantity does not always mean quality. With magic you have several distinct teirs in which a person could fall within.
You have Hobbiest, who collect and may perform but maintain a normal 9 to 5 job, you have enthusiasts who will buy what ever the newest product is, but don't make a living at the art, you are amateurs who may perform paid gigs once and a while, they may want to be something more but either do to lack of skill or experience haven't yet, and you have professionals, who make their bread and butter doing this.
The good news is the ratio of working magician to someone who just does magic is so much in favor of the working pro that you can breathe easily.
This art really is accepting of all types.
...the majority of them are probably more skilled or privileged than me.
No, not really. They are just finding their own ways, much like you'll have to do.
I live in the middle of Colorado and have NOTHING magic related at all in my area.
As others here have pointed out, you have a golden oppertunity here! If nothing exists MAKE IT! If you build it, they will come.
I can't go to any magic shows or try out for the Magic Castle or anything.
Sometimes you have to go to the mountain, the mountain can't always come to you. If you want to make it in this business, you're going to make sacrafices. What exactly those are, and what they mean to you is something for you to figure out.
I mean would a career in magic even pay the bills?
With time, and dedication, a little luck, and a bit of determination; yes, but expect to starve for the first few years.
I would give ANYTHING to be a famous magician but I don't want to shoot for the un-attainable.
Be careful what you wish for. If the only reason you are in this is for fame, fortune, and glory then you're in it for all the wrong reasons. Fame, fortune, and glory are by-products of good entertainment and a good entertainer. They come as a result of time spent and effort made. If you seek them in any other way you are setting yourself up for ultimate defeat. Focus on making the people happy for a while, trust me, fame will find you.
Famous is also a pretty generic term too. You could be famous in a small town yet unkown to the world. I'd redefine your goal to have a more specific meaning for sake of clarity.
The odds of that happening seem to be very slim, however, because of all the others with more skill or privelages than me.
The odds are what ever you want them to be. If you word it like that, and believe your own words then you've created what is known as a self fulfilling prophecy. Basically, you're setting your own self up for failure. Pick your tail up from between your legs, hold your head up high and challenge everyone for your chance to be seen and heard (just do it respectfully).
Your future is in your hands. You have the tools you need. If you don't then make them. I'm not going to tell you to go to school, because school isn't for everyone. I'm not going to tell you to get a stable job that makes decent money as a fall back. Not everyone is cut out for a suit, tie and desk. But I will tell you to follow your heart, and be willing to accept the things that come with the decisions you make, be they for the better or for the worse.
As always, the best to you.
Draven