There is no illusion.
Intel said it best; ”Hyper-Threading Technology is a form of simultaneous multithreading technology(SMT) introduced by Intel. Architecturally, a processor with Hyper-Threading Technology consists of two logical processors, each of which has its own processor architectural state. After power-up and initialization, each logical processor can be individually halted, interrupted or directed to execute a specified thread, independently from the other logical processor on the chip. Unlike a traditional dual processor (DP) configuration that uses two separate physical processors, the logical processors in a processor with Hyper-Threading Technology share the execution resources of the processor core. These resources include the execution engine, the caches, the system-bus interface and the firmware.” These shared resources allow the two logical processors to work with each other more efficiently and lets one barrow resources from the other one when it is stalled (is waiting for a requested file to arrive so it can finish processing the thread).
A hyper-threaded or dual core CPU each can simultaneously run two threads, but they are not the same: each has its own unique set of advantages. A dual core 3.2 gigahurtz processor will easily out perform a singal core 3.2 gigahurtz hyper-threaded processor.
***A hyper-threaded processor's cores each contain an execution engine that manages, and shares its resources between, two logical processors. On a hyper-threaded core, you have two thread paths through this core, each path is able to use only about half of the cores processing power. With hyper-threading inabled, a 30% performance improvement is possible, but more than 10% is likely.
***A regular processor's cores each contain an execution engine that manages a single physical processor. On a dual core processor, you have one thread path through each core, each path is able to use 100% of the cores processing power. With use a a second core, an 80% performance improvement is possible, but more than 40% is likely.
Most programs are simple and are only written to use one core. But some programs and games are very complex and demanding, and are written to fully utilize hyper-threading and/or any number of cores they have excess to. Windows 7 and 8 are very hyper-threading and multi core processor friendly, Vista XP 2000 and 98 support and manage this extra resource poorly. For Windows 7 and 8, I recommend the use of at least a 2 core processor. These operating systems manage 2 cores well; they free up one core by running background programs in the second core. If you have Windows 7 and 8 and run mostly simple programs, you will see little to no difference between a 2 core 3.2 gigahertz CPU, and an 8 core 3.2 gigahertz CPU. If you are a gamer or power user, you most likely will make good use of the extra cores/processors. The degree of benefit you see in a hyper-threaded or multi core processor depends on how well your software and the operating system are written to efficiently manage that specific extra resource. Hyper-threading has been around longer, so there is more hyper-threading friendly software out there than multi core , but there is no subsitute for a second core.