@Kreutzer "someone closes his eyes
before Naoto uses his quirk" it's not the case that they can just get out of it by closing their eyes, only way to avoid it is to know of it before hand and keep their eyes closed basically.
@Eklispe By creating illusions/hallucinations he can show people their worse fear in the worse case scenario thus physically and mentally disabling the person, especially since what they can see can be anything. Even should that illusion vanish the one affected wouldn't be able to recover so quickly. Not to mention he doesn't have a limit on how many people he can use it on at once meaning everyone infront of him can be affected at once, only draw back to this is he'll have blurry vision for longer most likely. There is also nothing stating that he has to look at them to cause the illusions, they just need to have their eyes open beforehand. Being able to sit back and relax I can point a lot more out on it. Though any injuries made by the Illusion is fake, it wont be so to the person so an injury that would normally cause the person to faint still will in the illusion.