No; for one thing, the time-dilation is an illusion experienced by people observing from outside the black hole. If we're in the black hole, we don't experience the illusion.
Actually, time dilation has nothing to do with a conscious observer. It is an observed fact that unstable particles (such as muons) have a longer lifetime when they are measured to be moving at 0.99c. I have my high school students perform an experiment which confirms this, and scientists down the road at FermiLab do this all the time in particle accelerators.
Of course, the kind of time dilation I'm speaking of here is due to special relativity. The time dilation due to black holes is a gravitational effect which is in the realm of general relativity.
But the same effect takes place on the Earth. Take GPS receivers and their satellite hookups, for instance. Since the electronics involved in these systems are so high speed, then calculations of time must be very precise. It ends up that gravitational time dilation causes time to pass just a wee bit slower on Earth's surface than in geosynchronous orbit where the GPS satellites rest. In order to make sure the electronic calculations work out, you must account for this time dilation - otherwise, your GPS receiver wouldn't work.
Does this still qualify as your definition of an "illusion"?
For another thing - the time-dilation IS an illusion, not a real effect. In much the same way that time "seems" to slow down as you approach the speed of light. Time isn't really slowing down; what's happening is that you're outrunning photons (or almost outrunning them), so that they take a longer time to reach your eye than they would've if you were travelling slowly. Thus, the changes in objects that the photons would reflect come to you over a longer period of time, making it seem as if those changes took place slower than they did. Time continues at the same speed it always does.
No, you're wrong. You're making the same mistake that classical physicists did in the 19th century: you are assuming that there is a fundamental & absolute frame of reference for the measurement of time. Yet all experiments performed to date show this to be untrue.
If you define "real" by what can be measured, then yes time dilation is a real effect in nature. If you're using a different philosophical definition of "real", then you're posting in the wrong thread - try Philosophy & Religion instead.
I ask you this: if you really believe that an absolute frame of reference for time exists, how would you measure it? Any temporal measurement you make, whether it be using a clock, subatomic decay, biological aging, etc, is subject to the laws of time dilation.
Same thing. Except in the black hole, it's not you moving faster, it's the photons moving slower as gravity yanks on them.
Wrong again. Photons do not change their speed - regardless of the conditions or the observer, they travel at c = 3x10
8 m/sec in a vacuum. Again, this is a fact that has been experimentally confirmed numerous times and it forms the basis of all relativity theory. What happens with a black hole is that as the photon attempts to climb out of the gravity well, it must lose energy but cannot slow down. The way a photon loses its energy in this case is to have its wavelength stretched out, thereby decreasing its frequency and energy. This effect is known as a gravitational redshift - and yes, it is also an experimentally confirmed fact.