Ego (in a negative way) is that which obstructs the free creative flow of self – expression of self in all forms. The illusion is within the consciousness in the form of an obscure perception and a limited comprehension of experience within the individual consciousness. There is nothing wrong with the manifestation or any experience within this manifestation as long as this experience leaves no trace on the individual consciousness, nor it creates recollection, longing or projection.
The ego (self-identity) is the very seed of & for our existence. The level of self-realization and awareness through this identity matters, however. In order to be free, we are to experience the natural mind, free from projections and recollections.
Ego is our past that consciousness tries to bring up. It wants to bring it up only with one purpose – to be free from it, to see it clearer and neutralize it (the impressions). By realizing that our experience is the product of the ego (or distortions within the consciousness) and by experiencing the natural mind in its stillness and neutrality we can realize that there is nothing wrong with the experience or manifestation but with the consciousness having tendencies, inclinations and assumptions (judgment) towards one experience over the other.
Ego is that which recollects, analyses, judges, projects and is of an anxious and ambitious nature. True being, natural mind or whichever way you want to call it – the reality is neutral, still, empty, equanimous and blissful (creative in potentiality). Once you experience the natural mind – being, you automatically know that which is of a transitory nature. All those emotions and thought waves are distortions of the mind-being yet come from the being, inseparable from the being. You cannot kill them or run away from them, as you cannot from the self. You may only realize the nature of the consciousness manifesting the illusion from the essence of the self – the space of the self. You may only realize that space itself vibrates and produces the phenomena and you can only master the self as the space that vibrates and manifests, you may subside the waves within the self and be. This is the path of Siddha Kundalini Yoga or natural spiritual being.