The Queen is much more than a middle class German housewife. Whatever that means.

https://www.theguardian.com/uk/2013/jan/14/secret-papers-royals-veto-bills

As for the house of lords, there is no 'explaining' it. No matter how much mental gymnastics you do, unelected, hereditary aristocrats and appointed theocrats being in the upper house of a country is inexplicable. Even before the existence of an upper house.