This is the real value of models and concepts we use - not their grand philosophical sense, but how useful they are. We set up boundaries between creatures, define concepts like life and death because they allow us to understand and predict the world better. It's usually more useful to treat two creatures as two creatures instead of one, but sometimes it's the reverse - for instance, it's often more useful to treat an entire colony of ants as a single being, individual ants becoming just cells / organelles.
It is useful for something. It's just not useful for problems that require a high degree of specificity. And not all problems do; in fact, some are hindered by it. (For instance, focussing on individual atoms won't really help you do politics.)
It's a world view, I wouldn't jump to the conclusion that it's useless. Religions are world views, and they have certainly been put to use.
If it's true, does it even matter if it's useful? Maybe truth is more important than utility.
I think that's what "eating the fruit of the tree of knowledge" means. If the universe is unity, when you die, the universe is still here. As Christians put it, "One with God". If you see yourself as separate to the universe, when you die, you're dead. And Hell = consumed by ego, which likes comparing you and others.
That's going into philosophy, and it's useful in so far it helps people feel content.
And indeed, we are the cosmos contemplating its own existence.