There is an aspect of this world that is an “illusion” or rather simulation.
These are training grounds. We come to this world to improve. In order to improve, we must face harsh conditions and ruthless enemies which show no quarter. In order to fight with full self-giving, we must believe that innumerable horrors await us upon defeat. Which they do. But not ultimately.
Thus, for example, I think pre-existence of the soul and reincarnation are generally true. It follows that no soul would agree to join the fray if there was a non-zero chance of hell. But it does people a disservice to focus on these things, since they take the mind off this reality.
Therefore, Christianity is wiser than eastern systems by generally as part of its theological tradition (though not explicitly as part of the articles of faith) denying these.
One of the reasons why God is hidden is precisely so that we could take no habitual recourse to His omnipotence. The song says:
If I have longed for shelter in Thy fold,
When Thou hast given me some fort to hold,
Dear Lord forgive.
For example, there is no way to prove universal salvation either by reason or by faith. I tend toward that opinion: my God does not sacrifice souls for the “greater good”; but I do not dwell on this subject.
I think hellfire is an ultimate and perfectly efficacious incentive against sin, in the end deterring even the worst SOB from his crimes, rather than a place of eternal punishment. This understanding, too, is best ignored in life.
There are things in this life that are best not to know. If this is in a sense a simulation, then it is so exquisitely designed that it deserves to be considered fully real. So, forget everything you read in this post.