Your analogy, S_inf = {1,2,...,inf} = N, and |S_inf| = inf, is exactly my misunderstanding in this topic. From the proper notation of (or what I understand to be proper notation) S_n = {1,2,...,n} = N, and |S_n| = inf , you have swapped 3 n's for 3 inf's. What you have done is exactly what my knowledge and logic is forcing me to believe is true. If your analogy were the actual notation, I would not be on here confused.
Here is my thinking.
There seems to be a crucial difference between "as n goes to infinity" and infinity. The difference being, n is never infinite, even though n goes to infinity, while the set of N is infinite.
Having said that, how it is logical to have some finite n (even though n goes to infinity) from the notation S_n = {1, 2, 3, ...} equate to an infinite number of elements in S_n (the set N)?
What am I saying that is wrong here?