My take on it is that it just boils down to what your highest insights are about what is important in life. If you believe that the maximum we can hope for is just to be sophisticated animals, acting in a sophisticated jungle, aiming for more sophisticated forms of animal goals (gain the most power, impregnate the most females etc.) then through that particular filter, indeed honesty doesn't necessarily pay off and dishonesty can be just another good tool in the toolbox to achieve king of the pack status.

There are however those who aren't content with just being sophisticated animals. They want to to dive into the depths that no animal can reach, and that requires self-honesty, and uncompromising honesty at that. And there is no way you can truly be honest with yourself while being dishonest with others, for reasons which become evident once you walk this path. This path (if traveled to its full extent) pays way more dividends than any benefit gained from prizes given by the sophisticated jungle. So, whether honesty pays or not, really depends on what sort of existence you seek.