I don't think the fuzzy edges between two states mean that the states themselves are illusory. Fuzzy borders are a property of very nearly everything, so much so that I'm struggling to find a counterexample. You've already illustrated that with your example: if black and white aren't so black and white, what is? (Rhetorical, but I'll take an answer if you've got one.)
I concede that there is probably not a clear line between conscious and not. I have experienced being close to that line myself in the morning. But the lack of a delineation doesn't mean that consciousness isn't real any more than the existence of #EEEEEE means that a room with no light isn't black.
I concede that there is probably not a clear line between conscious and not. I have experienced being close to that line myself in the morning. But the lack of a delineation doesn't mean that consciousness isn't real any more than the existence of #EEEEEE means that a room with no light isn't black.