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There's still a lot to do with working out and understanding the processes which drive the formation of galaxies. Not all of it is well understood, but enough is known to know what works and what doesn't. But as the quote says, theoretical modeling and observational evidence must go hand in hand, otherwise it'll be nigh on impossible to understand what's going on.
A lot of people don't understand that you can't always design terrestrial analogues of processes and such that occur in astronomy simply because of the scales and the energies/processes involved. You just have to go with what you've got and that's what comes down the to the detector via the mirror/lens/dish. Simple as that.
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