In general, most differential equation models involve an idealized version of the real situation: nature itself is way too messy. Part of the art of mathematical modeling is to consider enough detail to capture the important effects, while ignoring irrelevant complications. A model of continuous matter ignores the fact that matter is made up of molecules and atoms. In the case of a porous medium, although the actual physical object has a very complicated structure with small holes, you consider a model of the medium "in bulk" where that complicated structure has been smoothed out.