What novels, films or quotes reinforce the idea that 'People often need to grasp onto delusions in order to manage with reality'?
Ender's Game by Orson Scott Card addresses the theme of illusion versus reality perfectly. In the novel, the military train Ender, a young gifted boy, using all sorts of strategy games and battle simulations; the government is desperate to cultivate a master-mind commander who can take control of their space fleet to defeat these space bugs that plan to annhilate Earth. They choose Ender as their front-runner, because he is compassionate enough to identify with the enemy, but at the same time, he is so compassionate that he does not really want to wipe out an entire species.
Ultimately, the military trainers lead Ender to believe that he is still practicing battle simulations against the aliens, when in reality he is actually leading the real fleet of starships. The commanders give him the illusion of playing video games, because they understand that he would be unable to carry out their plan of extermination for the aliens because of his compassionate nature.
Maybe anything by Tennesee Williams, A Street Car Named Desire, Camino Real.
Death of a Salesman, The Crusible by Arthur Miller
The Iceman Cometh by Eugene O'Neill
Macbeth, Hamlet, Othello, and Lear by Shakespeare
Don Quixote by Cervantes
The Reluctant Fundamentalist by Hamid
The Unbearable Lightness of Being by Kundera
Zorba the Greek by Kazantzakis
Terror in the Name of God by Stein
In the Presence of Mine Enemies by Burnham
The Three Faces of Eve by Thigpen and Cleckley
Psycho by Hitchcock
"In the opinion of the chair the ayes have it."