In regards to the speed of light thing, I was just trying demonstrate that the interaction takes place about as fast as we see it. It is still a physical interaction, so I agree, doesn't really matter.
I agree with the second point you make. In fact, I believe that even our own consciousness is an illusion created by chemical interactions in our brains. There is no "consciousness", only interactions. Some interactions are more complex than others giving us that illusion or feeling of being more aware. We are just matter changing form like anything else.
Well. How do you know that consciousness is an illusion?