denial takes many forms - but the thread that connects them is that they all FEEL denying. a white lie is a denial, but in truth all judgements also create denials - a judgement always involves error to some extent and a 'filling in the gaps' process which limits our understanding - while we think we are increasing our understanding. when we realise that most people have no concept of this and that, in fact, much of society is actually BASED on creating judgements - we can begin to realise the degree of delusion we are dealing with.
the idea of using denial to protect from guilt is doubly disturbing since guilt is itself the result of denials. guilt requires blame and neither serve any useful purpose - they deny our natural innocent self and prevent us from fully accepting ourselves and learning and moving on.