"Could mental illness explain atheism and non Christian religions?"
The question is really the other way around as Christians believe in all sorts of unproven, undemonstrated things and most atheists are fairly well rooted in reality. Delusions are a prime symptom of mental illness.
"Jesus's message was simplke- worship him as god, or burn in hell.
Period."
Simple message because it is devoid of explanations and logic. Horses poop gold coins is a simple message, but it is unsupported by any evidence.
"WHY are there people who choose damnation over salvation?"
I don't because that is not the choice available. The actual choice is between believing ridiculous assertions or believing logical arguments supported by credible evidence.
"Are they mentally ill? Are they stupid?"
No and no. Now defend yourself and your positions against the same questions.
"Athiests are usually too stupid to understand Hellfire is not a good thing..."
No, I think most of us agree that hellfire would indeed be a bad thing, however, there is no credible eveidence supporting the existence of hell or hellfire. We are smart enough to understand that. Too bad about you.