Quite literally this is it. Its actually funny when you pay attention to the way some normies talk, they always drop a blackpill here and there about certain aspects of life and how they correlate to looks, and when you look at their face, they seem completely unfazed about it. My way of thinking was along the same line as yours, people know the blackpill is true, but acknowledging this truth openly would be so brutal, that they rather cope and delude themselves for the rest of their lives thinking they live in a just world (just world fallacy) and that "those who do good will have good done unto them and those who do bad will have bad done unto them." When in reality all you have to do is look at men like jeremy meeks, ted bundy, and richard ramirez and see how they were treated by women (literal criminals who committed heinous crimes such as serial killing and raping and almost beating a small kid to near death) and you'll see how absolute nonsense this garbage theory is.
Low smv people (mainly low value men) deny it because the truth is so brutal that they rather lie to themselves then accept they are considered worthless garbage by the rest of the society for something that is completely out of their control.
mid smv people either deny it either because they dont want to believe that they are so shallow as to be able to treat another human being either more favorably or horribly simply just because of their bones in their body, or they actually secretly believe it themselves but keep disseminating bluepill advice to those below them to keep them in the dark about the true nature of mate selection by females, as a way to reduce competition for said females thereby improving their own chances of sexual success.
And finally high smv people and high status people (models, atheletes, politicians, actors, ceos of big businesses etc etc) Keep spewing out the bluepill for the same latter reason as why mid smv people do so, but also they do it as a form of population control and to keep "society in check" and to maintain the status quo and their power. The upper crust people are literally parasites who's whole livelyhood is based off the consumption of resources from the common man. If they the bottom 60% of men where to suddenly out of nowhere drop out of society and live on their own and not contribute to this society, said society would quite figuratively (and probably literally) collapse like a house of cards and there would be anarchy with every man for himself, and those parasites would lose their grip and positions of power (because that society doesn't exist anymore). Our whole civilization from the very beginning up until this point has been, those on top leeching off the blood, sweat, and tears of those below them.