Tom, the atmosphere only bends (refracts) light in one direction. In order for magnification to occur, light needs to bend in two directions.
There are different types of magnification. What you are describing is the magnification which occurs when viewing objects through a magnifying glass.
This is not what occurs on the atmosphere. The atmosphere magnifies bodies through the
projection method of magnification. An image of the sun is being
projected upon the atmosphere between the observer and sun.
Have you ever noticed that if you hold a body far from a magnifying glass that the image will flip upside down? When you move the object past the glass' focal point it flips.
In contradiction, if you shine a projector at a surface of a wall the image will not flip no matter how far you are from the wall. The projection method of magnification has no focal point beyond which al bodies flip upside down.