How to do the Glitch:
1. Shot a arrow into Lava
2. Give yourself fire resitance
3. go into the lava
...then you have the arrow back.
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It is not really realistic: you make the arrow out of wood and feather and survives a while in lava.
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Remember, Minecraft is not 100% realistic, just ignore the "bug", if it were to be fixed, arrows will have to take damage like any other mob, and this might come to that cacti damages arrows.
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So, what's the bug? Why should lava stop you from picking the arrow up?