Lets step back for a moment and say religion is man-made. (Please note this OP is not about whether religion is man made or not)
I think that religiosity in general comes from human beings, and not from deities or transcendental planes of being. But that doesn't imply that religion was consciously and intentionally created. I see it as the byproduct of other innate human cognitive processes that leave people kind of predisposed and primed to think in religious ways.
If so, does it benefit the every day man?
The cognitive processes that generate it do.
One of them is obviously our ability to imagine objects and states of affairs that aren't actually present. That allows us to plan ahead and to critique past actions. But it also allows us to become imaginative and fanciful.
Another is our being born instinctually prepared to use language and to read, interpret and interact with other human beings. Those highly evolved abilities make it easier and more comfortable for us to relate to people than inanimate objects and abstractions, so human beings naturally tend to conceive of non-human objects and events as if they were human, in anthropomorphic ways.
And there's the psychological principle of closure. Despite how little people actually know about the world that they inhabit, they always have the subjective feeling that they are clued in, comprehend the big picture and are consequently ready for action. So there's an accompanying tendency to fill in the many gaps imaginatively.
Is it hope that keeps man's mind from collapsing under the pressure of everyday life?
Religious ideas still provide the foundation for ethics for most people. Religion gives people hope that they will be reunited with lost loved ones and that their own inevitable deaths won't simply be the end. It makes people's personal suffering seem meaningful. Religion creates the impression that history has a purpose, that the events that occur in our lives can be read for meaning and intention like human actions can, and that all of this noisy turbulence around us is actually headed somewhere, towards some ideal conclusion, towards something better. And religion makes the universe all around, the endless heavens above, seem comprehensible someow, friendly, purposeful and emotionally accessible, more like a work of art than a cold and uncaring machine.