We don't experience the sun going up and down, we experience its direction changing relative to the horizontal plane, and it is not an illusion: it matches planetary motion. The mistake arises when interpreting the raw experience. Sensations don't lie. Another example: Metal feels colder than plastic, but the sensation is right again: you are loosing more heat when touching metal.
But the sensation in a sense is a lie. Cold strictly speaking isn't real. And for much of human existence we spoke of it as if it was a substance due exactly to this specific sensatation.