As a ventriloquist who uses a puppet character and from my viewpoint, watching the film; 'Role Models' in which people dress up in medieval  costumes and battle one another with foam and cardboard weapons, I had to ask myself questions as to the value of role playing.
Is it self delusion or make believe and how do we mark the difference? In the film one of the main characters, Augie,  suffers depression through self denigration after losing his position in a fantasy hierarchy.  What values did this character draw from that imagined self that when removed left him struggling with the symptoms of self-delusion and low self esteem? What personal strength may be derived from role playing, pretending something is other than what it is actually in our lives and in reality? Is imagining and or creating character from fantasy, part of our mental tool system? I think it is. I could be wrong, but I don't think so. Finding balance, not always easy, I would think is the key to the answer.
When we strive to re-create ourselves isn't that in a way,  educating ourselves, of fostering self improvement? When we express our inventiveness, our imaginings, through art forms to  entertain others, aren't we projecting ourselves, in a way...out of body?  Let me quote: Nietzsche
" ...projecting oneself outside oneself and then acting as though one had really entered another body, another character...what we have here is the individual effacing himself through entering a strange being. "  
Danny Goes Medieval Scene - Role Models Movie (2008) - HD, you can see this scene on youtube where during the battle, Danny (Paul Rudd) stands up to the lame king and ruins the day for Augie, played by (Christopher Mintz-Plasse).