It worked in The Prestige because of the built up suspense and the double-twist.
It worked that way because that was the thing in and of itself. In its very essence magic (the show-type magic that The Prestige focused on) is suspense and a double-twist. Michael Cane describes it perfectly when he says: "Because making something disappear isn't enough; you have to bring it back. That's why every magic trick has a third act, the hardest part, the part we call "The Prestige"." That is the double twist, and it's there in every magic trick, we all expect the first twist - the making it go away. It's the second one, the Prestige that makes us doubt what we know, and doubt is essence of suspense.
I do so love the way Nolan has made Cane his kind of 'everyman' narrator in a lot of his films. As for Inception isn't he just making the same movie as the Batmans, and The Prestige? Isn't this just the next installment - with a very fine Leo doing the lead - of his unending film "What profit a man to gain the whole world but lose his soul"?
In the beginning I was kinda hoping the Nolan would kind of go out to that area where Kubrick made films, but (and it's fine) he went another way that is clearly discernible in The Inception. And he is very good (and I think it's almost impossibly hard) to make his kind of movies without getting all CGIitis - great effects can get in the way of a plot and ruin it, and/or great effects will not cover up a crappy plot, crappy writing, and/or ->-bleeped-<-ty acting - all over the place.
But that essential Nolan, the battle between gain and the cost of a soul - in his Batmans Nolan finally gets the batstory right in that Batman (the only real 'human' classic superhero) is a very black person, cold, distant and ever lonely because that's the price of vengeance and revenge. In The Prestige, how much would you pay to be a star? To do that one great trick that will forever make you the best, and not the other guy, who you hate with a passion? There is a lot of hate to deal with in these films. Hate is what Nolan sees as the end price of success, and that's pretty trippy.