I've noticed a few flaws with
your understanding.
Thats okay, we can help.
1.You need to create new blocks in order to make transactions, making it impossible for the crypto currency to ever be completely finite.
Not so, blocks don't need to generate coins, and a geometric decline is finite even if you don't go to zero (though bitcoin will go to zero).
2.You need to download the blockchain every time you fire up the wallet which becomes increasingly heavier with time
Then use a lite client.
5.Transaction time is dependant on the creation of new blocks
Transactions are "instant": the transaction is known to you as soon as you've heard of it. They become increasingly irreversible over time.
since we all know mining becomes more centralized with time anyways
There is no reason I'm aware of why that must be so.
3.make the transactions work through another method like IRC
You can send txn over IRC if you want.
Am I right or am I wrong?
Mining exists to solve the double spending problem, you've not suggested an alternative to achieve that. What is the point of your message and why is it in the technical subforum?