Desire forms the sense of self by fracturing the mind into what it wants compared to what it has. In moving with what it wants, it has to dismiss or resist reality (what it has) and form its own imaginative response. The sense of self is part of that fantasy buildup and has a central role in keeping it going.
The Buddha pointed to at least five routes to different levels of happiness for lay people: sense pleasures, merit, concentration, insight, and awakening.