What's the goal of therapy? To bring us closer to reality, or to make us happy?

Both I would say. We hardly can live a fantasy and have it work in real time.
If I live in fantasy, I would be like Shirley Maclain in her New Age ideas. Seeing
the struggles in the world instead of fooling myself that everything is well and good as she seemed to do in her books. No, the world is not a place of justice and I am well into adapted to that.
Illusionary thinking is weird to me...and the people within that realm are hardly able to cope if and when reality hits them in the face. Not only would they
be completely devastated and confused, but likely madder than a hatter.

We all have fantasies at times, like winning the lottery and what we could do with that.
But we are aware, it is a fantasy and keep on keeping on. The earth is not the place to be thinking of perfection but a trying time to learn and become whole. Without difficulties, we would not grow in this world. We would infantile in our view of everything and fool ourselves that there is no challenge here on earth. Without difficulties we cannot know to overcome and move forward. Thus having the feeling
we have conquered some small war within ourselves, and take action with the problems in the world. Feeding the hungry, helping in devastations, propping up a friend a neighbor in their time of need. Living a fantasy life is never seeing the need in others or ourselves for that matter. Just MHO, bj