Matter vs Spirit

Is universe built from matter or compassion?

(1.1) Some say matter, but then they have to argue that human consciousness is an illusion (e.g. Daniel Dennett)
(1.2) Pre-capitalist we say spirit and it is matter that is illusion.
(2.0) So how can matter be illusion when it is so obviously there?
(2.1) Look again: what is there is always a sense "i see the cat", "I hear the cat"... 
(2.1.1) The illusion is the jump from sense to definite thing "there is a cat."
(2.1.2) This jump occurs in the mind not in reality, just as the mirage we see on the desert horizon becomes definite "water" to the thirsty, how writing becomes things, and how pictures in a cinema become people.
(2.2.0) So what if two people go into a room independently and write down that they see a cat. How can the 2 pieces of paper agree if the cat is not real?
(2.2.1) They both think and use language normally. we cannot tell whether they understand their experience as a separate entity (the illusion) or a transitory experience (the reality).
(2.3.0) We can do a magic trick with this understanding.
(2.3.1) After having lunch on a table we can ask people to leave the room for 5 minutes sealing the windows and doors. If we dismantle the table into a pile of wood we can say when they return there is no where to have dinner! We have made the table vanish, yet nothing has left the room. Where did it go? (2.3.2) They will say it's there, pointing at the pile of wood. But look again: it isn't a table. The table has definitely been magicked away into thin air. This is possible because of 2.1.2 the table never existed permanently in the first place, it was only in the mind. Show the pile of wood to other people and they will not remember the table, so they won't be haunted by it. So things are easily seen as illusion, and spirit and human experience and compassion are easily viewed as reality. Unfortunately in this view all economy, labour and possession is illusion... so its not sold widely in capitalist countries... or Capitalist countries indoctrinate people in view 1.1