My Tunare (High Elf) in Dark Elf illusion has yet to run into an issue running around Neriak.
I also banked in Grobb often when he was exping in Upper/Lower Guk.
Just be wary of wandering into certain guild areas and understand different illusions may benefit you more. Example:
Gnome illusion doesn't do much for you in the gnome necro guild. Skeleton illusion makes you non-KoS though.
It really, very rarely, will matter in typical enchanter gameplay.
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