DarMM said:
...if the integral of L_{1} was an operator why would you even need renormalization? If it was well-defined there would be no loop divergences.
In my opinion, L_1 is a well defined operator. In any case, whatever subtle irregularities were found in it by Wightman, they are no match for the explicitly divergent constants deltam, Z_2 and Z_3 in L_2. So, I don't see how any cancelation of divergences is possible in L_1 + L_2.
My understanding of the origin of loop divergences is different from yours. In my view the major problem is that L_1 (when expressed in terms of creation/annihilation operators) contains "trilinear" terms, like
L_1 = a*ac + a*c*a + ...
where a is annihilation operator for electrons and c is annihilation operator for photons. When you calculate the 2nd order S-operator with interaction L_1 you need to take the product of two copies of L_1
S = (a*ac + a*c*a + ...)(a*ac + a*c*a + ...)
After normal ordering you may notice that there is a non-zero term of the type
(loop integral) a*a
This term describes some kind of "scattering of the electron on itself", i.e., self-interaction. One effect produced by this term is that the electron mass in the interacting theory is different from the electron mass in the free theory. That's why the electron mass renormalization is needed. In QED things are even worse: the momentum dependence of the trilinear interactions is such that the loop integral is divergent, so the electron mass correction is infinite.
As long as you have trilinear interaction terms in your Hamiltonian you'll always have renormalization problems. In the "dressed particle" approach these trilinear interaction terms are called "bad". The idea of this approach is to change the Hamiltonian so that these bad terms are not present. All interactions must be written in terms of "good" operators only. An example of such a "good" operator is
a*a*aa
You may notice that if you take a product of two such operators and normal-order this product, you'll never get terms of the type a*a. So, there can be no "corrections" to the electron mass. No renormalization is needed.
The question is: can we get rid of the "bad" terms in the Hamiltonian and still obtain the same accurate S-matrix as we know it from renormalized QED? The answer is "yes", and the "dressed particle" approach shows how this can be done.