Basically, an accurate assessment. I suppose this is Fringe's version of It's A Wonderful Life
, minus having the Observer take the non-existent Peter around to actually show
him the impact of his not being there on the other characters.
None of this though, explains how that damn machine can be there or how it connected the two universes without Peter, if this is now a re-written timeline. There's still serious flaws in this story and the writers are really going to have to work to give us a satisfactory explanation for all that we've seen.