[Question] Can someone help me understand the arrow of time?

If I understand correctly the psychological arrow of time tries to explain why we perceive time as passing by. It answers that in truth time does not pass—we exist at a single point in the timeline, but have the illusion of time passing by because we remember the past and not the future.

Firstly, is this approximately correct?

Secondly isn’t memory itself a process that takes place over time? So how can the illusion occur if time isn’t passing in which it can occur?

Thirdly if this were true, there’d be no point doing anything—time is never going to pass so you can’t do anything anyway. So why does nobody seem to act like that’s true? Does nobody actually believe the theory?

I have a feeling there’s some major parts of the theory I’m missing, but what are they? Or is the theory less ambitious and only tries to explain why time passes in a particular direction, and not why it passes at all?