Donald Hoffman: Do we see reality as it is? http://go.ted.com/bE8z
He's right, there is a fitness cost to seeing reality accurately, but there is also a benefit. the optimized solution is somewhere between disregarding reality & accurately seeing it.
His talk is undermined by the examples he gives. If seeing reality more accurately had as high a cost as it does in his models the beetles would out compete
In the model he presents, there are cases where agents knowing more about reality drive to extinction those that know less. Depends on the cost of information.