I think it is probably "real" in some sense, although its advocates almost certainly exaggerate what can be done with hypnosis.
I recall reading in one of physicist Richard Feynman's biographies that he agreed to be put under hypnosis. Now, Feynman was a strict materialist who did not believe in supernatural phenomena and he was quite skeptical that hypnosis would do anything to him. Yet, after undergoing hypnosis, he found it difficult (though not impossible) to resist the post-hypnotic suggestions of the person who performed the procedure.
If someone as skeptical and wary as Feynman experiences noticeable effects under hypnosis, then I think it's probably not 100% hokum.
The thing is, there's nothing supernatural about psychological phenomena. How the mind works has evolved to help us learn, imagine, and solve problems to aid us in the physical world. The mind is itself a product of a blend of physical processes. I would have expected a materialist like Feynman to realise this.
I read the Feynman biographies many years ago, so the details are a bit fuzzy to me. I do recall Feynman was skeptical of hypnosis. I can't recount exactly the basis of his skepticism.
I do think it's fair to note that hypnosis has sometimes been oversold by its proponents, which has given the popular understanding of it a bit of "woo" factor, similar to how the general public views astrology, ESP, faith healing, etc.
Definitely oversold - along with a plethora of other practices.
I find the placebo effect one of the most interesting. We know from extensive and repeated double-blind testing that the placebo effect is around 30% effective in healing many conditions, both the physical kind and the psychological. This is pretty phenomenal when we take into account that in research, 10% effectiveness is considered medically significant enough to merit commercial production and widespread use of a drug or technique.
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