"If people reacted only to the truth, to the 'facts,' or to reality, then we would probably live in a perfect world where there is no failure or error."

Or perhaps we would be paralyzed, finding nothing to react to. Our experience could be (perhaps defensibly) said not to be objective truth, fact, or reality. From this perspective reacting only to reality would result in non-action, unless one compromised by accepting a sort of approximate quasi-reality.