I have just re-written this response for the sixth time, wanting to make sure that you won't take this the wrong way.
I wasn't going to either way but...thank you for taking the time and trouble
I know you think you are improving your situation but you aren't. It sounds like your spectators are coming up to you with a sense of wonder and you think that you are enhancing that experience with your "explanations" and reassurances but your aren't. You are taking that wonder from them and stomping on it till it is something mundane and trite.
But I feel you took what I meant in the wrong way

Well, let me clarify...I usually, like most magicians, don't like to sit down and explain to my audience the beautiful intricacies of sleight of hand magic and how the method does not matter (If I have ever done that, it's prolly with close friends). I like to tip-toe around the question, you know, not telling the truth but neither am I lying. One may say that the most fundamental things a magician does is lying but I look at it in this way:- Lying about how their pulse told me which card is theirs is cool...but pretending to be a real psychic is a no-no. That's the more serious kind of lying which is the real BAD in this case.
I am not saying all mentalists lie. Some do. Unfortunately these liars are comparatively more famous and become cult-leaders which frustrates me. If using the centre tear makes someone God then when I use Barnum statements, I am Father of God.
If someone comes and seriously asks me if what I did was real, like, seriously (happens kinda rarely because people are not dumb...correction, most people are not dumb

), I try to STILL get out of it while tip-toeing around. But if there's no choice, I am not going to claim that instead of vanishing the coin I absorbed it with my skin. If such an unescapable situation were to form itself, I'd rather say I was using sleight of hand and use that to segue into some effect which uses sleight of hand as its theme (when obviously that second effect requires gaffs, yay for me

).
we leave them with an experience that seems impossible
There you put your finger on what I'm trying to say. The experience needs to be impossible, not what I do.
The difference? Well, I may be as incorrect as Baba Yaga who said there will be a World War 3 on March 25, 2018...but still, I'll try...
The difference is in how the audience look at it. Yes I admit, there are people out there to whom magic is real if it is real, and if it needs sleight of hand, it is NOT REAL. However, there more people out there, and this group of people are increasing as the time goes. This second group of people think like this:-
"The coin has vanished! [note...this is where the first group STOPS thinking. For them, magic is all about the first line] Is there anything in the other hand? NO! Is there any sleeves involve--NO! WHAT! HOW DID HE/SHE DO IT!!!"
They know it is possible to seemingly vanish a coin. Why, if I had a coin in my hand, asked you to close your eyes and then, put the coin away and asked you to open your eyes again, the coin seems to have vanished! The effect seems impossible! But the experience does not. Why? Because their brains can dream up possible methods to the trick. However if I do the most amazing false transfer ever and pocket the coin when they weren't seeing, the coin has vanished and now, even if they check my hand they won't find it. Now, the EXPERIENCE becomes truly impossible. Now, even if I TELL them I used sleight of hand, their brains cannot accept that as a solution because, after all, MY HANDS WERE BOTH EMPTY! So the experience remains impossible. Even the sleight of hand the magician claims to use seems impossible! What can be a better achievement for a magician? I am not claiming I have achieved that yet but, yeah...I'd like to achieve it. Just my performance-style and persona. Others may disagree and it's fine!
It's all fine as long as there's no blatant harmful lying. Harmful as in, if you are a mentalist, nobody should say you are God...and even if they do, say if your performance WAS that amazing (which is good, congrats

)...you mustn't keep quiet and continue to let them think you are God. Because now you haven't just let them form their own conclusions...by not telling them you are not God EVEN AFTER THEY CLAIMED THAT YOU ARE...you are going the wrong way about strengthening their ideas and wrongly popularising yourself. (Generic you being used...not pointing at you mate

)
You may be doing fine as a magician but you have a lot to learn about theater.
I know...and I'm trying my best!
should movies all start with disclaimers about the falsity of what is about to occur?
They do, don't they?