Why does this system works? It is assumed that is BECAUSE the theories "reflect reality" (whatever that means), thats why we can make accurate predictions with (some of) them.
There are two reasons. First, our universe is such (so far as we've been able to determine) that it has consistency. That is, the most things happen the same way every time, and if they don't, it's because something we didn't notice is different; we can then go look for that something, and we always (so far) have found it. For example, if there's a rock outside my door on the ground today, it will still be there tomorrow unless it was moved by someone or something. If I pick it up and let go of it, it will fall, and it will fall the same way today as it would have last week, and as it will next week. This property of consistency is embodied in physics in
symmetries. For example, if I pick the rock up and turn it around, and put it back down, it's still a rock. This illustrates the symmetries of translation (picking it up) and rotation (turning it around).
A brilliant theoretical physicist and mathematician named Emmy Noether showed that these symmetries (specifically, continuous symmetries) each imply a conservation law, and since this is a theorem, she proved it (which you can do with a theorem, being a mathematical construct, unlike a theory). Specifically, she showed (for example) that the symmetry of physical law over translation implies the conservation of momentum, and the symmetry of physical law over rotation implies the conservation of angular momentum.
You will have realized, of course, that the inbuilt consistency of mathematics reflects this apparent consistency of the universe. This is why mathematics is so useful for describing the universe. In fact, if we stick to a few simple rules in our math, if we discover some new way of manipulating the numbers, we almost always find some novel and interesting behavior in the universe that reflects this new way. The basic laws of mathematics, therefore, reflect some basic properties of the universe. And that's no surprise; we chose them carefully so that they would.
What happens is, someone looks at some behavior of the universe, and they develop some math to describe that behavior. This is called, if you will, a "conjecture." Then they explore implications of this conjecture in other areas than the one it was originally developed to explain, and see if they can find anything that makes it inconsistent with reality. If they fail, then it becomes, if you will, a "hypothesis." Finally, they look for implications of behavior that no one has ever checked before. The hypothesis is used to predict novel behavior. Once such a prediction can be made, then they go test it; they go looking for this novel behavior. If they find it, then the hypothesis becomes a theory.
Over time, more and more predictions of a theory are checked. If an inconsistency is found, it may result in a revision of the theory; it may result in the creation of a new theory; or it may result in the rejection of the original theory. The last is extremely unlikely at this stage of things; back in Newton's and Galileo's times, physics was very young, and new ideas were as likely to be completely rejected later as they were to survive. These days, we know enough that most of the theories we make might be revised, or a new theory that describes actions in extremes or conditions the original theory did not account for might be needed, but we rarely find it necessary to reject an entire line of thought.
And remember that as more and more predictions of a theory are checked, if they all come out true, the stronger the support for that theory is. For example, Gravity Probe B is currently checking for indications that Einstein's General Relativity Theory correctly or incorrectly predicts a phenomenon called "frame dragging." If it is correct, then it will be even more strongly supported than it is today; if it is not, then there will be some adjustment, but because GRT correctly predicts the precession of the orbit of Mercury, and correctly predicts the bending of starlight passing near the Sun during an eclipse, it won't be
supplanted, it will almost certainly be
supplemented.
To understand the genius of Newton and Galileo, consider that Einstein's SRT and GRT, although they are said to
supplant the laws of motion and the theory of universal gravitation, in fact,
supplement them; the laws of motion are unmeasurably incorrect at ordinary velocities. In other words, the difference between the predictions of the laws of motion and SR at velocities of any macroscopic object we have ever seen is minute enough to be essentially unmeasurable. The only objects we have ever seen moving at relativistic velocities are subatomic particles; and they obey the laws of SR. But for ordinary, everyday objects, the laws of motion are so close an approximation that it is not worthwhile using SR's more complex calculations; we could not measure the difference. Only by the use of the most sensitive measuring instruments are we able to see the effects predicted by GR and SR that differ from the predictions of the laws of motion; atomic clocks, for example.
The second reason that theories are able to predict phenomena is that they are deliberately constructed so that they do; and if they fail to, then they are rejected. We keep only those theories, in other words, that DO accurately describe reality. All others become not-theories.
Still, take for instance gravity. Is it a force? Is it a distortion of the spacetime continuum? Newtonian mechanics still work, and will work to make a great number of accurate predictions, but this does not render the theory "a true reflection of reality".
It was never intended to be "a
true reflection of reality." It was intended to be an
accurate description of reality. And it is. All of them are, within their areas of competency. Newtonian mechanics is not competent when velocities are very high; otherwise, it is. SR and GR are competent, as far as we can tell, for
all velocities. Universal gravitation is not competent over very long periods, or in very strong gravity fields; GR is competent, as far as we can tell, for
all periods and
all field strengths. But SR and GR are very much more complex; so if Newtonian mechanics and universal gravitation give answers that are accurate enough to be useful, that is, if they are used within their areas of competence, then there is no need to use the more complex methods. The question is, how accurate an answer do you need? Choose your method accordingly.
Current theories are able to predict with a lot greater degree of accuracy the facts we later observe. Is this an indication of them being "truer"?
No, it is an indication of them being more accurate. But I think that was obvious from what I have already written.