Can you make this rigorous? Because using the standard definitions, this statement is not true. It's true that a countable number of points must have total length zero (and you can even give a rigorous proof of this) but not necessarily true for a non-countable number of points. The study of "lengths of sets of points" is called measure theory.
I think it is unnecessary, however, to bring in the whole concept of length when defining lines. For example, we could simply define a line as a set of points obeying some special properties.
Infinities are weird; anybody who wants to learn math has to accept that. 0.99999… does equal 1, there are as many even numbers as integers, etc. these things are 'true' not because they make sense initially, but because they make the most sense of all the other things we have thought of so far. Similarly, a set of Aleph-0 points can completely cover a line.
Aleph_0 is the cardinality of the integers. I don't think that'll cover a line. For that, you need the cardinality of the reals, C, which may or may not be Aleph_1.
Charles Sanders Peirce said in 1903, ”Now if we are to accept the common idea of continuity […] we must either say that a continuous line contains no points or […] that the principle of excluded middle does not hold of these points. The principle of excluded middle applies only to an individual […] but places being mere possibilities without actual existence are not individuals.”
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.