This problem of self delusion is wide spread in the religious world, but is just the normal state among "mystics. "

What is called mysticism is thought to have great insights into spiritual reality. This is obviously a mistake since it is too mixed up with falsehood.  While I do agree that the Ari and Rav Nahman had great spiritual insights, that has nothing to do with the basic question. A person can have great spiritual insights because of their work and efforts in learning Torah and in separating himself from the vanities of this world. But that has nothing to do with "Mysticism".

Better it is to stay away from the self deluded.  This problem of self delusion is wide spread in the religious world, but is just the normal state among "mystics. "

Delusion of the religious is, "Because we are strict in certain rituals, therefore we are smarter, more moral, and more holy than anyone else." [And the corollary to this axiom is "And thus we are not begging for charity as it seems we do all the time. Rather we are asking for what is justly ours since we uphold the whole world."]

One aspect of this delusion is the idea that the religious are more moral than anyone else. But experience shows this to be false. They seem nice until you ask for a favor (after you have done tons of favors.]) 

[I hope it is clear that I do not mean to cast aspersions on the truly sincere or the great Litvak yeshvot which are far from all these faults. Rather my hope is to warn the naïve about what is all too obvious to those with experience. And in the Torah there is a specific command ""Do not stand by the blood of your neighbor"אל תעמוד על דם רעיך