Mastermind completely ruining Phoenix and kicking off the Dark Phoenix Saga is the obvious example of telepathy not being a cure-all against illusions.
Wasn't this when Jean still could barely grasp the concepts of TP? Not a great example.
What it's done when not bound by the rules of this tourney is irrelevant. In this match it's can't do what you want it to.
What bounds? The only thing the Waterbearer hand does is give Aquaman an extra punch against Mages which you drafted. You just drew a bad number here.
Perhaps you should review the rules. Using telepathy for things like that is specifically forbidden.
"• A mental attack on an opponent is allowed though."
To which Ecstasy is very vulnerable.