O.K. A Schwarzchild black hole does not exist in reality. It is a non-rotating spherical mass with no magnetic field. Those do not exist. But by idealizing the problem, it makes some aspects of conceptualizing reality a bit easier, than attempting to deal with the gravitational variations introduced by rotation, magnetic fields and an other than spherical mass. It is a good approximation for planets and stars. Less likely as good for real case black holes. But that gets into a whole different discussion.
So to answer your question in a sense the Schwarzchild solution is a simplification of GR, to an idealized form.
About the collapse.., yes that is what the equations say.., but they also begin to return infinities and are generally not considered as a good description of what goes on in reality, inside the event horizon. That subject has for the most part been turned over to theorists working in quantum mechanics, i.e. searching for a viable model of quantum gravity. However, I don't believe that any serious theorist today believes that point singularities are a reality. The word "singularity" seems to be another of those definitions that has different meanings or interpretations depending of who you are talking to.
Predictions made by GR have to a large extent been verified or in some cases proven, but remember as Declan pointed out the event horizon is the limit for GR. Though it still has some problems at galactic and cosmic scales, GR does a good job of describing and predicting the dynamic relationships of gravitationally significant masses, outside the event horizon.
GR does a good job of predicting the path of objects inside the event horizon just by transforming from the Schwarzschild coordinates to Gullstrand–Painlevé coordinates which are good for analyzing the spacetime inside and outside the black hole. Because of the spacelike separation between the outside and inside we can't know anything more about the black hole than it's mass, angular momentum and charge.
From Professor Taylor and Professor Wheeler text Exploring Black Holes.
"we want a metric in the coordinates r, phi, and t_rain. We make this transition in two jumps for events outside the horizon: from bookkeeper coordinates to shell coordinates, then from shell coordinates to rain coordinates. Assume that the resulting metric is valid inside the horizon as well as outside. The transition from bookkeeper coordinates to shell coordinates
dr_shell = dr/(1-2M/r}^1/2 [D]
dt_shell = (1-2M/r)^1/2 dt [C]
Now, to go from shell to rain coordinates use the Lorentz transformation of SR. Choose the rocket coordinates to be those of the rain frame and the laboratory coordinates to be those of the shell frame.
Radial inward direction
dt_rain = - v_rel y dr_shell + y dt_shell [9]
Substitute [C] and [D] into [9]
dt_rain = -[(v_rel y dr) / (1-2M/r)^1/2] + y(1-2M/r)^1/2 dt [10]
Solve for dt
dt = [dt_rain / y(1-2M/r)^1/2] + [v_rel dr / (1-2M/r) [11]
v_rel = (2m/r}^1/2 [12]
y = 1/(1-2M/r)^1/2 [13]
Substitute [12] and 1[13] into [11]
dt = dt_rain - (2M/r)^1/2 dr / (1-2M/r)
Substitute [14] into the Schwarzschild metric and collect terms to obtain the global rain metric in r,phi, and t_rain
This metric can be used anywhere around a non rotating black hole, not just inside the horizon. Our ability to write the metric in a form without infinities at r=2M is an indication that no jerk is felt as the plunger passes through the horizon."
dTau^2 = (1-2M/r)dt_rain^2 - 2(2M/r)^1/2 dt_rain dr -dr^2 - r^2 dphi^2
There are very interesting predictions for the path of objects as they follow the natural path to oblivion.
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