Good luck with finding magnetic snaps - I'm enamored of them, but no one in a one hour radius of me sells them. I guess I'll have to break down and internet order some.
You're right, velcro wouldn't be so tasteful. What do you think of doing some sort of magnets on the interior of the bag and the flap? Something that wouldn't show on the outside? I'm not exactly sure of how you would do that, but it sounds cool, eh?