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Hi Diane,
Thanks for your comments. Yes, it's true that in spacetime that doesn't expand, the infinities that come about due to point masses are a problem. However, if spacetime expands faster in the presence of larger energy-density gradients (local inhomogeneous expansion in the presence of larger local energy-density inhomogeneities), it essentially prevents the point like infinite energy problem from occurring, basically because the more pointlike an energy-density becomes, the more furiously space-time tries to pull it apart.
Since the only thing preventing matter from being ripped apart by spacetime expansion are forces (strong force, electromagnetic force, gravity), a sort of equilibrium is reached for each force where the spacetime expansion is exactly offset by the force. So you get a situation where energy density is neither pointlike (prevented by spatial expansion) nor homogeneous (prevented by forces which holds the matter together).
Another way to see that spatial expansion reduces the energy of matter traveling through space is to thing of matter in terms of it's de Broglie wavelength. expanding spacetime redshifts the de Broglie wavelength just as it does electromagnetic waves. And just as with electromagnetic waves, a redshifted de Broglie wave has less energy. So that's another way of seeing how spatial expansion resists pointlike energy from occurring (point-like energy would be an infinitely small de Broglie wavelength).
Anyway, I'm sorry I'm going on and on here. It seems like I'm trying to make up for making my essay so short.
Best Regards,
Roger