Totally Agree with all responses so far; we've used 123 magic since the kids were little, and it's beautiful!!
Wanted to add something, though, that I thought of when I read your post: Sometimes, it's really hard letting kids be their own person. I've noticed myself imposing some things on my son (almost 9) simply because that's how I would do it; he argues back because there are other ways to get to the same place, and, when I stop and listen to him, he is (usually) right. It's just not how I would do it, and sometimes it's the long way around, which frustrates me (I like efficiency!!!!) but if it causes no harm, I let him do his own way. I don't know what it is you're arguing about, but try to observe yourself to be sure that you're not imposing your wishes on him simply because it's how you would do something; he may have his own valid, individual ideas. And, some of the best lessons my son has learned have been from NOT listening to me; for example, when he does his chores, I show him how I do the chore first (like, wiping down the bathroom counter). He usually wants to do it his own way, so I let him. And then I go over it with him again because it's done, but not well (like, he didn't move things around to wipe under them, etc.). So he has to do it again. Lesson? Would have taken less time and been easier to do it the way I showed him...
However, while we encourage free thinking and creativity, we never tolerate rudeness, insolence, or hurtful speech. It's a great gift to teach a child to disagree, and even debate, respectfully.
Hope this helps, and good luck!
Ali