In a free scalar field theory, Wick's theorem guarantees that $\langle \hat\phi(x)\rangle = 0$ and $\langle \hat\phi(x)^2\rangle = \infty$. Given that $\hat \phi(x)$ creates a particle at $x$, these have the relatively straightforward interpretations $$ \langle 0|\text{particle at x}\rangle=0 $$ and $$ \langle \text{particle at x}|\text{particle at x}\rangle \equiv \langle x|x\rangle = \infty $$ where the latter parallels the delta function normalization of position eigenkets in single-particle quantum mechanics.
My main question is—what implications do these calculations have when we treat $\hat \phi(x)$ as an observable? The first result is relatively unproblematic: the vacuum expectation of a free scalar field is zero. The second, however, seems to imply that the variance of the field is infinite. How should we interpret this? Since the calculation works the same way for a vector field, it seems to imply that the EM field has infinite variance in the vacuum, which (at least initially) seems kinda fishy.
Now, my hypothesis is that the above infinities should go away when you consider a more realistic measurement scenario, like measuring the average value of the field in some small region. Where $f(x)$ is some Gaussian peaked at the point of interest, the operator corresponding to this measurement should be something like $$ \hat\varphi(x)=\int d^4x'\,f(x-x')\, \hat \phi(x') $$ which creates a particle in a Gaussian distribution centered around the point. This will still have $\langle \hat \varphi\rangle = 0$, but instead of the variance diverging, we have $$ \langle 0 | \hat \varphi(x)^2 |0\rangle = \langle \text{particle in Gaussian distribution}|\text{particle in Gaussian distribution}\rangle = \text{finite} $$ since Gaussian distributions are normalizable. So even if "vacuum fluctuations" at a point are infinite, they wash out to a small, finite size at any measurable scale, as we'd expect. Is this intuition/explanation roughly correct?