That's precisely the paradox. All it's real as it gets -- even illusions, albeit illusory, are real (illusions) -- and yet there's no reason to be flustered. I love to tease spiritual folks that God has quite material(istic) dreams. Sure, one may feel noble, honorable pain, but that's just an arbitrary personal response. You may then ask why peace -- well, simply because peace is a no-response that arises when one does not assume a point of view, not even that of indifference. Also, there's one tiny detail which get's easily missed in Buddhism after Buddha (and it's basically the only but at the same time the most serious blunder of Dennett) and that is -- who sees/knows/is conscious or aware of the fact that there's no self? Contemporary Buddhists as well as Dennettians come (although in different ways) to the same conclusion and equate anatman with nonexistence of "I" whereas anatman was just a response to the Hindu misinterpretation of atman as it was largely understood in Buddha's time (i.e. personal, transmigrating soul). One may say that Buddhism was just an attempt at reformation of Hinduism (to bring it back to it's roots). Well, it's no coincidence that they say that form is emptiness, but the same emptiness is nothing other than form. Or in words of Ramana Maharshi, "The world is illusory, Only Brahman is real, Brahman is the world." I would also quote a contemporary philosopher or scientist, but those who "know" essentially quote the same sources. All in all it’s ironic — I’m offering peace and you cling to pain ;)