It's not about hallucinating. The important thing is that it provides a powerful soft reset on highly-habituated thought patterns, reactions, and perspectives.

People who experience depression and anxiety often times have ingrained negative or counter-productive thought patterns and micro reactions that are very difficult to overcome. Sometimes even noticing these patterns is quite tricky.

It makes a ton of sense to me that psilocybin, especially with the guidance of skilled therapists, can have this kind of incredible impact.