Even people who are highly intelligent and 'rational' are victims of this mechanism

Granted. I am certainly a victim of many everyday delusions. But I try to catch them when I can, and disarm them. Also, organized delusions might be more dangerous than individual delusions. Individual delusions are tailored to the individual, and they can't get widespread recognition, and so are more or less harmless. When a delusion is shared by many, however, for example in the form of religion, or love of one's country, it can become quite dangerous and harmful.

If relationships were all honest and deception-free they will definetely have a different form from the one having now. But unfortunately very few people can handle honesty and no sugar-coated facts.

I think this should be cultivated from early on, in school, in the whole of society from the moment we're born. We're pretty plastic during those early years, and we can get accustomed to a lot of things. But having a person grow up in a nuclear family feeling loved and unique and smart and beautiful etc., and then suddenly having him enter the real world where all his delusions are shattered, is certainly a recipe for a psychiatric disorder, could even be interpreted as child abuse.

The need to seek and find patterns when they are not there. The action of making-up patterns when there is nothing there. Its seeking temporal continuity about two events that seem similar or associating two facts which seem that the one follows the other or the first one is caused by the latter. Its our ability for teleological reasoning and cause-and-effect relationships. Its an inability to understand coincidences in another words.

It might be what makes us good scientists!

How about astrology; the old idea that the planets play a role in our lives.

I always find my zodiac sign is more accurate about my personality than the Myers-Briggs personality test is. Now what does that say about the Myers-Briggs personality test?!