I consider Daniel Dennett one of the greatest living philosophers. His book
Consciousness Explained is outstanding, absolutely a must-read work. As a philosopher, though, he is certainly imperfect--e.g., how seriously he takes memetics. Bottom line, though: any one who harbors "mystical" notions of consciousness (e.g., "All is Consciousness," etc.) should grapple with Dennett's challenges.
You've hit a criticism that others had have about Dennett, as well: he doesn't so much
explain consciousness as actually
explain it away (cf. John Searle), presenting a worldview that ignores consciousness rather than illuminates it. Many competing philosophers, for instance, consider Dennett to not properly address
the "hard problem" of consciousness. Although, that is somewhat unfair--it's just that his solution is unpopular and counterintuitive (e.g.,
"Quining Qualia").
If you would rather follow your intuitions, though, you might find more light from the work of David Chalmers, Galen Strawson, and Jaegwon Kim (all of whom integrate neuroscience into their philosophies while still preserving consciousness, sometimes panpsychically).
To follow Dennett's lead and further explore "illusion" in the philosophy of mind, Chalmers has compiled a nice collection
here. Here's a spoiler: the debate is more complicated than Dennett presented.
"The infinite vibratory levels, the dimensions of interconnectedness are without end." -- Alex Grey