I think you need to look for the following book, Finite Quantum Electrodynamics: this is not something "fringe" nor some "crackpot" off-shoot.
The name of the game is Causal Perturbation Theory, and was pioneered by Epstein, Glaser: "The role of locality in perturbation theory".
As far as i understand your question (in the context of your comments, etc), this answer should suffice. However, maybe it'd be a good idea to take a look at what's known as Local Quantum Physics: i think this can give you a broader view.
PS: Another route that seems worth pursuing is that of Vertex Operator Algebra (VOAs) (sometimes known just as 'Borcherds Algebra'). Note that these "infinities problems" appear in QFT because, ultimately, we're multiplying distributions (in the sense of generalized functions — in fact, operator-valued distributions) at the same point, which is not an allowed operation mathematically speaking. Thus, the way out is to do what people have suggested above and follow Ken Wilson's approach of "point-splitting": this is just the physicist's version of the idea behind VOAs. The bottom line is that every QFT is valid only on some energy scale, so when you cross such line, you're bound to get meaningless results (think of it as the sites of your lattice — defined by this energy scale — merging: completely distinct points gradually become the same). In this fashion, you can take the following path: define your QFT via a certain VOA that explicitly sets your energy scale in its Operator product expansion — which is nothing but the 'multiplication rule' of the VOA you have at hands. In principle, this is mathematically rigorous, although very difficult. In any case, this also answers your question.