Maybe one way of looking at it is: When out of the body, our souls can experience all events happening simultaneously, as they really are. However, the bodies have been engineered to limit the soul's perception capabilities - to make them a bit 'dumber' or atrophied, either because that's the lesson, because of 4D STS influence, or both - so now we simply can't grasp all that information in one go. Instead, we experience events linearly, only a limited number of things at a 'time', cause our bodily hardware and genetics can't do any better. And when we confuse that type of perception with objective reality, we call it 'time'. It is in that sense that time would be an illusion.
It's as if you were looking at a very complex mosaic, so complex that you couldn't help but to analyze one tiny bit after the other instead of grasping the whole, and then after looking at each of the parts of the mosaic, you concluded that they appeared in a sequence, when in fact it was your limited perception that made you experience it like that in your mind.
Of course, there is still the problem of why we all perceive 'time' consensually, as having the same sequence. If all events are happening simultaneously, and 'time' is just my subjective perception of them, why can't I perceive them in a different order than everyone else? Why do we share the experience of what is past, present and future in the same direction? Probably has to do with cause and effect determining the 'order' of things.
But then how can events be simultaneous if we factor in cause and effect? How could a superconscioussness (4D or out of body) experience it and move in and out of that line - or would it be constrained by it? I imagine that it would be able to perceive several timelines at once running in parallel, branching and crossing each other, and it would have the ability to focus its consciousness on one or another at different points. But I would imagine that ability would not be unlimited - cause that would be 7D - just much more expanded than ours.
