How old are the tracks and the cars? Anecdotally, the streetcars in Dublin are quiet and don't make any sort of racket. Same for the (single, sad) streetcar in Atlanta.
Streetcars (and buses) work best on dedicated or semi-dedicated routes. The problem with their reliability, in the case you describe, is the cars that are creating the traffic.
I'm sure poor track condition probably had a lot to do with it. With respect to reliability, I think buses and even trolley-buses have an advantage over streetcars in traffic because they can go around obstructions in the street, while streetcars really can't. Trolley-buses have to stay on roads with overhead lines of course, but they still have more lateral freedom than trolleys on rails.
Modern trolley-buses has a battery on board, which allows them to cover some sections without overhead lines. Automatic connection/disconnection of pantograph is the real problem.
Streetcars (and buses) work best on dedicated or semi-dedicated routes. The problem with their reliability, in the case you describe, is the cars that are creating the traffic.