Religion as Denial

So, religion was first used in order to explain natural phenomenom, such as
Q. What causes the sun to move throughout the day?
A. The (Greek) God Apollo pulls it everyday in his chariot.
I can understand that religion gives a hierarchal structure to its believers:
God
Priests
Believers
And it does give people a feeling of belonging and communionship. But I do not see where that is such a bad thing. Yes, the radicals are nuts, but for the average person who chooses to believe in whatever God they choose, how can that be harmful.
Yes people fear death. Why do others have to criticize those who believe in heaven or reincarnation, or whatever, if they are not harming anyone in the process? I think that believing in something greater can be very beneficial. It's not denial, it is faith. For many believers it is not a way to escape the reality of death, or loss, or failure, instead it is a way to cope with reality. And if their relaity is to believe in something which is beyond, I see nothing wrong with it. We all lie to ourselves on a daily basis, in order to make ourselves feel better and to get through the day. So even if Heaven ends up being just a dirt sleep, that isn't anyone else's problem.