By saying she's a fool she's implying she "always knew" but refuses to believe it ("and the cracks don't count") until it happens in front of her ("it's got to break for me to me").
"and all I'm left with is sand in my shoes" - the only memory she has of at the beach, is the worst thing. She doesn't have the love, or the romantic walk, jus the sand
"words you could never say / they hold the loudest tones" links to "fools never ask / afraid what lurks in your eyes", because she's told through a "distant look" rather than being told literally.
By saying she'd "pick the fool anyday" she means that she'd rather see it how she likes it, then know the truth. Sort of like being naive.
This is jus my take on it. Beautiful sad song.
