Reactance is an easier way to characterize energy storage elements (inductors and capacitors) in AC circuits. In DC circuits, the relationship for an inductor is v = L*di/dt, where v is the voltage across the inductor and i is the current through the inductor, and the equation for a capacitor is i = C*dv/dt, where i is the current through the capacitor and v is the voltage across it. These equations are also valid in AC circuits, but some simplifications can be made. We can make generalizations for the sinusoidal steady state response, which is the output response to an input sinusoid (think the voltage from a wall outlet), after all transients have died out.
Using some ideas from the Laplace domain (the s-domain), it can be shown that we can represent the impedance (reactance) of a capacitor is 1/(s*C), and the impedance (reactance) of an inductor is s*L. For the AC case, we know that we're dealing with sinusoids, which allows us to substitute j*omega in for s, where j is the imaginary unit. That's right, since I is used for current, EE's decided to use j instead. This is part of a technique called phasor analysis, which is very handy when dealing with sinusoids in differential equations.
This leaves us with the impedance of an inductor as j*omega*L, and the impedance of a capacitor as 1/(j*omega*C). The advantages of these quantities is that we can then treat inductors and capacitors much like we do resistors, using the relation V=IZ, where Z now is the impedance of the circuit element. Ohm's law is better than you thought, eh?
Using these quantities, we can get the output as a function of s, which is the Laplace transform of the output. Then, we apply the inverse Laplace transform to get the solution back into the time domain, where we all live. Or, if we use phasor analysis, then the output will be some complex number. The magnitude of the complex number will be the magnitude of the resulting sinusoid, and the phase angle of the complex number's phasor will be the phase angle of the output. Either way works very well for solving such problems, and have different times where they are preferable. For instance, using the s-domain to get a transfer function between the output and input is useful in obtaining the system's frequency response, often represented by a Bode plot.
There's a brief explanation on how the impedance is calculated and used. I hope this helps. And also, what you said about differential equations actually being used in the real world, you would be amazed at how much in engineering relies on differential equations. I'm only finishing up my sophomore year, and it is very surprising how important DE's are to engineering problems. I'm not sure if you plan on entering the engineering field, but the mathematics is sometimes pretty intensive, but rather interesting.
P.S. I'm sure some of this is not quite right, so if I was wrong anywhere, someone who is more knowledgeable than I am, please feel free to correct me.