Time never feels like it exists for me. I have no clocks in my house, I only check time if I'm going to catch a bus.
Yea, time is relative not an illusion. I think this idea just ends up at perception and how our senses dont equal reality. We never really see things are they actually are in the present. Light reflecting off of objects takes time to travel into our consciousness therefore we see it incredibly small fractions of a second into the past. Its amplifyed at larger distances such as your example.