Astrum said:
I still don't really understand why the product of zero is 1.
0! = 1, in in my mind, 0! = 0
After all, what is 0*0? Or is 0! defined as 1 just for simplicities sake?
It's nothing to do with the "product of zero". It's simply how the factorial of 0 is defined.
n! = n(n-1)...2.1, for any positive integer n. The lowest n that this definition can accommodate is 1, so 1! = 1.
0! cannot be calculated the same way as above (and neither can the factorial of any negative integer or any non-integer).
Hence 0! is simply defined as 1. As to the question of why this is so, the short answer is so that other definitions and formulae remain consistent.
Long answer (and examples):
In combinatorics, there are nCr ways of choosing r objects from n. The definition of nCr is ##\frac{n!}{(n-r)!r!}##.
How many ways are there of choosing n objects out of n? Intuition should tell you the answer's one, not zero - the only combination is to take all the objects together as a single choice. But what happens if we let n = r in that formula? You get a 0! term in the denominator. If that value was anything other than one, you'd be in trouble.
Second example. You're probably not familiar with the gamma function ##\Gamma(x)##. That's a generalisation/extension of the factorial function so that you can calculate something analogous to "factorials" of positive and negative non-integer values. For positive integer x, ##\Gamma(x) = (x-1)!##, in other words, it outputs the usual factorial, with the argument "shifted" by one. It can be easily proved that ##\Gamma(x+1) = x\Gamma(x)##. So what happens if we put x = 1? We get ##\Gamma(2) = \Gamma(1) = 0!##. To keep everything consistent, we again need 0! = 1.
Summing up, your second instinct - 0! is defined that way for simplicity's sake - was correct, but I hope my post has given you a brief understanding as to why exactly that's so.