In the past months I have been reading a whole lot of books about Consciousness. In my understanding I don't think that consciousness is the same as someone convincing himself that the wall is only imaginary.
I have experienced moments of very lucid consciousness and it is more of separating your "automatic thought processes" from the stillness that exists when you are not constantly "babbling" in your head.
Supposedly we have 12.000-60.000 thoughts - or brain flashes - per day (I don't know, haven't counted them), and 80% are repetitive. That "little voice" talking in your head leads you to think: "Oh yeah, that wall is only in my imagination", hence so many people mistake the information in books like "The Secret" or "Law of Attraction" for: hhhhhmmmmmmmmm, lets think very hard about a pack of hundred dollar bills, then sit lazily back and they will appear. The same mistake that JW's do! Let's pretend that the end is coming....I can almost smell the roses in Paradise. THAT thought-process (imagination) is so real that they believe in it (the mind cannot distinguish between reality and imagination - Reality, as you've correctly stated will destroy imagination EVERY SINGLE TIME, because, well, hitting brick walls hurts!)
Therefore, in my opinion, consciousness is another state of mind, where you become the observer of your own mind. You allow your thoughts to flow ("the voices") but don't follow them down the "rabbit hole". Like a school teacher in a school bus full of screaming and laughing children that is not running from child to child and paying attention to every single word they say. Just notices them, hears them, observes them and decides if he has to approach a certain child for a specific reason!
In this scenario my "babbling mind" becomes more of a tool that I use at will. It is a wonderful tool to do a task (calculating, planning, writing an email, etc.) but a lousy tool to let it control my Life or steer my day-to-day activities. My mind will wander off, back and forth into the future, the past, imaginary situations that will never happen (positive or negative) and this takes energy and doesn't move me forward IN THE REAL WORLD.
We allow "automatic thinking" (that was necessary from an evolutionary point of view) to take over and dominate the consciousness (that is like a canvas, or a background in our mind) and ruin everything. Personally I think that "automatic thinking" (drifting) is a by-product of basic instincts from our past evolutionary process (therefore it is logic that they are repetitive). My cat repeats most of her daily routines (signals in her brain tell her to eat, drink, shit and sleep - over and over again). My Life quality has improved since I calmed down my mind to the point where I have more stillness in me and become more focused to attack tasks or daily problems.
Hope that makes sense. It makes sense to me
Anyway, thank you for this discussion. Really interesting, would like to hear more from you or others interested in this topic.