Renormalization is not (only) a "dirty trick" to get rid of infinities in S-matrix elements or other observable quantities but necessary even for perfectly finite quantities. The reason is that in perturbation theory one uses parameters of fictitious objects called "bare particles", i.e., of free particles, and one has to adapt the wave-function normalization when considering interactions. This you can see even in usual quantum mechanics when you do, e.g., the "old fashioned" perturbation theory of stationary states (Schrödinger perturbation theory).
In quantum field theory, in addition one can absorb the infinities into the "bare parameters", that are unobservable, but as Demystifier pointed out, that requires the introduction of a energy/momentum scale. It does not come from the regularization, because the renormalized theory should be independent of the regularization used. A clearer picture is BPHZ renormalization, where you don't go over an intermediate step of a regularization, but interpret the Feynman rules as expressions for the integrands of loop integrals and subtract the divergences and subdivergences systematically before you do the integrations by using Zimmermann's Forest Formula.
These subtractions can usually be done only at a non-zero spacelike four momentum due to the analytic properties of the vertex functions and the demand that the counterterms, contributing to the wave-function-normalization factors, masses, and coupling constants must be real in order to have a self-adjoint Hamilton operator which guarantees a unitary S matrix. In this way you always introduce an energy-momentum scale, and this choice is in principle arbitrary, but the values of the "dressed parameters" depend on this choice of the scale. Changing the scale thus leads to finite renormalizations of these parameters, such that the prediction for observable quantities (S-matrix elements) don't change. The renormalization-group equations describe this change of the renormalized parameters of the theory such that the observable quantities do not change.
In the context of perturbation theory that independence in principle holds true only up to the order of the expansion parameter (e.g., some coupling or \hbar[/tex], etc.) taken into account in the calculation. The solution of the renormalization group equation with the "anomalous dimensions" given by perturbation theory are however usually to any order or the expansion parameter. One can show that this corresponds to a certain resummation of perturbation theory, summing up leading logarithms (see, e.g., Weinberg, Quantum Theory of Fields, Vol. II).<br />
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Another interpretation, originating from the work of K. Wilson, is that "irrelevant degrees of freedom" are integrated out in the path integral of the action. This can, e.g., be "hard modes" and thus the meaning is to coarse grain over small-range correlations lower than a certain energy scale. This is particularly intuitive in the context of many-body applications, where one looks at collective modes of a system rather than at the many microscopic degrees of freedom making up this collective behavior since if one restricts oneself only to observations below a certain energy or momentum scale (equivalent to the resolution of time and space dependences of observables) the complicated microscopic degrees of freedom become irrelevant concerning the collective behavior at the resolution of the observation.