Religion and the Gods
Religion has largely become a relic for the curious or scholar. There are a few who cling to traditions and rituals, but they are viewed with tolerant pity as confused people who could get help from one of the many medical centers or basic assistance if they would just ask. There are stories, of course, of divine intervention and miracles. Stories from a time before. Stories that anyone with common sense ignores. But, for a diehard few, these stories keep alive a hope that the gods may return.
Crisis of Faith
Any divine powers that do exist have found their influence on the world blocked by the same event that affected magic in general. This has caused many to reason that if the so-called gods can be restricted and forced to operate through the same Charmed material as magic, then why worship them? Additionally, as life became easier and violent crime and war lessened, magic and science provided most means of medical care and subsistence. Less trouble has equated to less need for divine help.
Clerics
Clerics exist but are uncommon. While magic is considered useful and utilitarian, religion is not. Anyone who persists in their calling finds themselves championing a cause that few others care about. Their ministrations and sermons are lost on the general population. Prayers and supplications may provide insight or bolstering of faith, but direct action is restricted by the Charmed material requirement.
Some abilities, such as channeling, remain functional, but their application is not widely sought after. Why seek out a cleric to channel healing when medicine, treatment, and if necessary, healing potions are available from a hospital or dispensary. It's not that clerics are completely impotent, it's just that they are largely unnecessary.
True, knowledge and divine access is still needed to craft healing potions or similar items, and this is where most remaining clerics find their employment. Since clerics are fewer, they are highly sought after and well-treated in return for their efforts. Of course, they are licensed and regulated, much like other practitioners of magic, but it's all for the greater good!