I picked the blue pill because I like blue. OK, seriously, I did pick the blue pill, although I don't like the wording. Really, I would like to stay in the Martrix knowing that it is a fake world. The people are still real people, and just think of all the cool Neo-esque stuff that that knowledge would allow you to do?! You could be a superhero! Move over, Spider-Man!
I used to be of the persuasion that truth should be regarded above all, but I have changed slightly. Personally, I have an obsession with truth such that I seek it out and tend to not be happy otherwise, so they kind of go hand-in-hand for me. However, I can't make that decision for others. I can't and don't want to force truth on them (except in the case where I have a certain relationship with a certain person that make me want to share it with them.)
I am not going to subject others to suffering because of my personal ideal of truth. And even for myself, that ideal only goes so far. If I had to choose living in that crap Earth outside the Matrix or living a happy life in the Matrix, unaware of its falsehood, I would probably choose the Matrix. I've only got one life; I might as well be happy in it. (Although, like I said, I'd like to have my cake and eat it, too, please.)
Of course, if I was in Neo's position, and I didn't know what the hell Morpheus was talking about, except that he could offer me some substantial truth, I would have taken the red.
Now, there are times when allowing people to live their fairy tales leads to great suffering, such that it is necessary to expose the truth, and this is usually the case. For example, the falsehood of religion is always a source of great atrocity, and people should always be attempting to expose it for the crap that it is.
All this talk reminds me of when I realized the determinism of the world. I realized that whatever thoughts I was to have in the future weren't under my own control, my own free will, but were the single possible outcome of previous events. I felt very sad when I realized that--sadder than I had ever been. I felt empty inside, and I found it very hard to concentrate on school. However, I soon learned to accept it and am fine with it.