Can someone explain this to me because it seems hard to swallow?

Someone said that all the planets in our solar system can fit in between the Earth and the Moon. I want to know how the moon can stay in orbit or cause tides on Earth from that great a distance. If Earth's gravitational pull can keep the Moon in orbit it should also pull in every stray asteroid or meteor or the satellites in a much closer orbit. I also read in the news that the moon is actually moving away from the Earth, according to instruments left on the moon to measure its distance from Earth, which is growing further away.

Relative size of Earth to Jupiter
Relative size of Earth to Jupiter
Can someone explain this to me because it seems hard to swallow?
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