It is NOT correct as you properly note. Not all infinities are created equal; but that's complicated. Let's keep it simple here and maybe I can help you "imagine" a little about infinity. .
Your quote is based on a simple inverse square law, meaning 1/r
2 for idealized point charges. That's a dot without any size, a mathematical approximation, not a physical reality; that let's us do a lot of math, but not all, rather simply and with great accuracy. As r approaches zero (distance,say) both 1/r or 1/r
2 approaches infinity...but not quite the same way.
An infinity just might occur within a "small space" such as the center of a black hole, where space is completely curved...it's so curved it "disappears" and there is no distance...so there is no "distance", there is not space, there is not time..it's called a singularity which is a theoretical type of infinity...but this "singularity" has different theoretical mathematical characteristics than another type of singularity, that which might have initiated the big bang which might have started this universe from "nothing"...
Maybe you can begin to imagine a point singularity this way...take a piece of paper, crumple it up into a "ball" shape...points on that paper are now closer together...unless they have to travel the surface of the crumpled paper...crumple it more and more and more...distances from point to point get smaller and smaller and the crumples get more and more curved...more disttorted...there are mathematical ways to measure such changes...
Try this idea of infinity: If the universe is infinite then there is no beginning nor an end...it extends "forever" . I might well be infinitely distant from you, and you might be infinitely distance from someone else who is also infinitely distant from me. But no one knows if the universe is infinitly large.
Just keep in mind the above descriptions might not be EXACTLY accurate...but they might help you imagine a little about infinities as long as you don't take the analogies (approximate ideas) too far.
You might also try reading something more advanced, like fractals:
"...The structure of a fractal object is reiterated in its magnifications. Fractals can be magnified indefinitely without losing their structure and becoming "smooth"; they have an infinite perimeter resp. an infinite surface area. An example for a fractal curve of infinite length is the Koch snowflake..."
http://en.wikipedia.org/wiki/Infinity#Geometry_and_topology
I'm pretty sure infinites are ideas; so far, I do NOT think there is experimental proof (incontrovertible evidence) of any infinities in this universe.