Lyric discussion by RichBOH 

Cover art for Blue Beard lyrics by Band of Horses

sounds like he's pronouncing grand allusion but illusion seems more likely.

GREAT song. My favorite off the new album. They make great songs, hopeful and sad alike. This one being a little sad then with a bit of hope at the end. He (the person in the song) can't understand how she can walk away from what they had. He even seems uncertain as to why it ended (or he doesn't think it's a good enough reason i.e. i was drinking that night). But in the end he's determined to try love again.

Yeah, I thought allusion at first also but like you said it seems more likely he means illusion given the context of it.

Any idea about the very last line? All i can make out is banana peels but that literally makes no sense to me.

Dunno honestly. Banana peels are slippery and therefore they cause you to fall, so maybe it's a metaphor for making a mistake or failing in a relationship...or maybe it's an inside thing. It's so good it doesn't even matter ha.

Yeah, the banana peels are true, it's easy to slip up!

Could this song be about Mat Brooke??