Here's the Buddhist take because that's what I'm currently studying: the key to awakening is becoming dissatisfied with being asleep and dreaming. "Happy slaves are the bitterest enemies of freedom", as the quote goes, although there's also an element of ignorance involved - the dreamers aren't even aware they're sleeping and consequently aren't curious about ways of waking up. This sleeping and dreaming takes the form of delusion, and waking up would mean seeing stark reality for what it truly is; it doesn't involve becoming superhuman or omniscient. Psychic powers (allegedly) appear and disappear in higher meditation stages but are considered distractions, same as states of infinite bliss and wellbeing, and Buddhist meditators are enjoined to ignore those too as the real goal is still far off. As no permanent unchanging self exists here, there can be no higher self either, and certainly no soul. Past lives are irrelevant, this one is where it's at so don't waste your time and get down on your pillow already! It's admittedly a pretty bleak religion, come to think of it but right now, it's the only one that makes some sense to me.
Once you introduce the term 'delusion' into the dialogue, frequently a tug-of-war of opinions between followers of different systems will ensue: "You're deluded when you claim…" - "No, it's you that's deluded, the real truth is…" What's the nature of the ultimate reality in which will you wake up? And how can you be so sure right now, not having awakened yourself yet?
Here is my fallibilist copout: we can only speculate but can't really know, so it all comes down to belief. Belief in turn rests on emotions, with a thin veneer of reason and logic most of which consists of justifications - we believe what we want to believe, and here's why. Ask people about the afterlife or the existence of god, and they'll describe what they feel is true (sometimes out of fear of eternal punishment and whatnot, another set of emotions). The idea that clinging to the idea of a permanent self as an obstacle to awakening resonates so strongly with me because I feel (again: feel) vindicated, me being a cynical bastard in certain respects; others may find it appalling. Or delusion as the root of all evil: it fits my own life experiences perfectly.
Coming from a chaos magic background, I regard all belief systems as more or less arbitrary; I just feel (that feeling again!) more at home with some than with others. Nevertheless, I don't consider all paths equal and don't think they lead to the same goal either.