I think it was Neils Bohr who said that "the opposite of a trivial truth is false; but the opposite of a great Truth is also True." This is one of those "great Truth" insights that fall into that category.
In one sense the Buddhist doctrine that all life is suffering is simply a recognition that all life (on Earth, that is) is a manifestation of separation from God or the Source ... and as long as we experience ourselves as separate, we will seek a spiritual reunion that we can never reach on the physical plane. No matter how we experience that -- whether through longing for our Twin s-Elf as Linda experience and wrote so much about, or the separation from our fellow man in war ans strife, or the separation from our loved ones in death, or the separation from any and all of our desires that are not fulfilled -- it is painful; and that pain does indeed underly our whole experience of manifested life.
On the other hand, from a spiritual perspective, and even by direct experience in deep meditation and contemplation, we can come to realize that separation is an illusion -- a lie. We are NOT separated from God, from Spirit, from our Higher s-Elves, from the source of all. We only experience ourselves as separated in order to incarnate into the world of duality. And in that sense pain IS ultimately a lie!
But understanding this and balancing it with our life experience in compassion and love is no easy matter. If we take it glibly, we find ourselves saying to those in pain, "get over it, it's all in your mind." But that's neither loving nor compassionate, as you were quick to recognize, Rainbow~!
Nor is it really accurate, because we are REALLY experiencing it, whether it's "absolutely" real or not! I think the best approach we can take to this paradox is to show sincere compassion for those having the experience of pain (including ourselves!) ... while at the same time holding within our hearts the awareness that "this too shall pass" that in the light of eternity, even our most painful experiences can be seen more accurately as needed lessons and helpful steps on the path back toward spiritual Oneness. And if we can keep that awareness in perspective, then our own experience of pain will miraculously lighten!
Love,
Greg