What I found interesting about the Scott encoding was that natural infinity was trivial to define, and arises directly from a straightforward construction of the div function (for naturals).
The encoding is as follows (\x indicates lambda abstraction for identifier x. Recursion is assumed, of course it could be made explicit with the Y combinator):
zero := \f \x n
succ := \n \f \x f n
infinite := \n succ (infinite n)
infinity := infinite zero
subn := \n \m m (\p n (\q subn q p) n) n
divn := \n \m (subn m n) (\p zero) (succ (divn (subn n m) m))
divn (succ zero) zero => infinity
EDIT: Note that infinity does not have a normal form (does not terminate), but: subn n infinity => zeroHowever I don't think any of this matters for the point the article made. The problem is not that 1:N/0:N has "nothing sensible" to return, the problem is that if you define it in the way most mathematicians do, a lot of your proofs will be littered with (inline) lemmas showing that the result of such-and-such a division is a finite natural / finite real. This is analogous the problem brought up in the article of having proofs littered with lemmas showing that the result of such-and-such a square root was real.