Anyone else suffer from delusional parasitosis out there? is it really rare?

It is rare: It is rare. I am no sure abut exact prevalence, but i saw only a couple of cases during all my career as a psychiatrist. It happens more ofter in people with Cocaine dependence.

Yes, very rare: Yes, delusional parasitosis is very rare. It's hard to quantify the incidence because most of the existing literature comes in the form of case reports and series. It does seem to be more common over age 50 -- and there's also a peak from age 20-30. After age 50, the incidence is 2 women: 1 man; men usually present before age 50. About 10% present as a shared disorder -- folie a deux.

Not that rare: The very fact that you realize the bugs are an illusion -- though an amazing one -- is a triumph. As one who's done a lot of answering questions online, i've communicated with dozens of folks like you. There's actually a few medications that produce delusional parasitosis as a side-effect. I think it's fairly common but you are exceptional and fortunate to see its true nature.