Jesus did exist. But he would be very different to the image people have in their heads. I reckon everyone would be surprised if they could some how meet the real guy. Christians might even reject him.
People believe in religions because it gives a sense of meaning, belonging, community, and security. Those are powerful emotional drives. Also, it can trigger an altered state of consciousness, and because that feels intense, it seems more real than day to day experience. And when push comes to shove, emotion trumps reason every time. Of course, people can have all those positive experiences based on naked reality rather than stories, but that requires a bit of work and the insecurity of not knowing for a while, whereas religion is instant - just believe now. Religion truly is the opiate of the masses.