Answer:
Digital white-out.
I am beautiful up in the sky. I am magical yet I cannot fly. To people I bring luck to some people riches. The boy at my end does whatever he wishes
I have a little pool with two layers of wall around it. One white and soft and the other dark and hard. Amidst a light brown grassy lawn with an outline of a green grass.
Though I am only two words I have thousands of letters in me
One pace to the north. Two paces to the east. Two paces to the south. Two paces to the west. One pace to the north.
Describes a mysterious region and a stylish pair of shorts.