Interesting OP, thanks.
Can you think of ways (other than lying) that illusion spells are cast in modern Western society?
Yes, although it still heavily depends in the spoken word. That is, change the definition of words. You are thus able to hijack the collective unconscious and steer it towards a particular direction.
The concept of “lying” assumes/implies a common/accepted definition of words. In other words, a dwarf can say “I am a giant” without lying if he’s previously transformed the definition of “giant” to mean “minuscule”.
If you pay attention, you’ll realize how vocabulary was recently hijacked. I have so many examples I’ve gathered over the years... here are just a few.
“Liberalism” has nothing to do with liberty
“Capitalism” has nothing to do with economic freedom
“Antisemitism” has nothing to do with semitic people
“Progressivism” has nothing to do with progress
“Discrimination” has nothing to do with equality before the law
“Racism” has nothing to do with supremacism
Edit: some copy-pasta I had saved:
Here are a few examples of words that were hijacked, and their actual (current) meaning in parenthesis.
Edit2: where it gets really interesting is when you realize this has been going on for a long time. As Damian Marley would say, “who made up words, who made up numbers?”