> That's the thing though. As I understand it, or as it's said to be: points have zero extension. So, no amount of points, not even an infinity of them could ever have extension.
This isn't true for an uncountably infinite set of points, assuming by 'extension' you mean what is usually called 'meausre' in modern mathematics. Modern theory is perfectly fine with saying that a line of nonzero length contains an infinite number of points of zero length, and trying to draw on Euclidean notions definitions of 'point' and 'line' to find conclusions about real analysis is going to be unhelpful.
I'm not sure what that Peirce quote is trying to say.