Thanks, Jonathan - your check led me to sanity.
Here's a record of what I did for anyone else with similar problems:
Originally, after installing ImageMagick, I ran 'make check', which
ran tests successfully. I thought all was kosher... It obviously
wasn't.
But now I ran 'display lucy.jpg' which resulted in the error:
error while loading shared libraries: libMagickCore.so.2: cannot open
shared object file: No such file or directory
Found the following solution: 'ldconfig /usr/local/lib' which resulted
in another error:
ldconfig: /usr/local/lib/libtcmalloc_minimal.so.0 is not a symbolic
link
I ignored that and re-ran the display test and got the proper help
text. Also I successfully converted lucy.jpg into lucy.png
In /config/initializers/paperclip.rb I added the line:
'Paperclip.options[:swallow_stderr] = false' (removing my previous
misunderstanding)
Restarted Apache (just to be safe), deployed - with passenger restart
- and got the proper resizing on upload.
:)