i think this chapter explains it best.
But specifically, no, some people are not 'holographic projections', its , for exemple, to project an image of 'Jesus' to a christian fanatic, in order to gain his allegiance and compliance. Because they can 'read minds', its easy for them to take a shape that pacifies the target, based on its tendencies.
Forum:
"Cults," Sects, and "New Religious Movements"