A small refinement to your thinking.
The ballast resistor and points and coil are all in series. This means if you add the resistance of the two devices and divide that result into the input voltage you calculate the current (amperage). When the points are closed, current flows, when the points are open no current flows and the voltage across the points is the full input voltage. The is no voltage drop across either the ballast resistor or the coil since there is zero current. So what is the purpose of the ballast resistor? You might also wonder what the condenser is supposed to do.
The coil is in fact a transformer, a coil wound inside a coil such that an alternating voltage on one coil, the primary, will induce a voltage on the other, secondary, coil. If the primary and secondary coils have the same number of windings, the input and out voltages will be the same. If the the primary has say 50 wraps and the secondary has say 1000 wraps, the ratio is 1:20. So 12V AC in would produce 240V out. (actually a little less due to transformer efficency) Notice all the voltages must be alternating or rapidly switched off and on. Notice also no mention of current because current does pass through a transformer.
So how does this transformer do it's thing? A current passing through a wire creates a mild magnetic field, wind the around a piece of iron to make coil and you have an electromagnet. Now wind a second wire on top of your first coil and you have a transformer. Why, because current flowing through a wire creates a magnetic field and as that field builds the field cuts through the secondary coil and induces a voltage. This secondary voltage works across the secondary load to create current, ie I=V/R.
Note also, power = V times I and since you can't "create" power, the power output of the transformer will always be equal or less than the input power.
Anyways, a transformer is an inductor and it "backfires". When the voltage in is rising, the magnetic field rises and the secondary voltage rises. When the input voltage drops to zero, the magnetic field collapses, but the collapsing secondary voltage induces a reverse magnetic field and this induces a negative voltage spike in the primary. This voltage is what causes the points to arc and produce a negative voltage ripple backwards into your input power supply.
To control this negative spike a capacitor, another non-linear impedance, will short this pulse to ground, but block non-alternating voltage, ie your battery DC. This in fact why a few capacitors in your wiring harness will greatly reduce radio static.
So why the ballast resistor? The coil is an oil filled transformer which has difference inductive characteristics when it is running and at operating temperature. To make starting easier with a "hot" spark, the starter switch bypasses the Ballast resistor. Once running, you don't need as hot a spark and you don't need to drive the coil quite as hard, so the ballast resistor is added to split the input voltage across the resistor and the coil in a ratio equal to their individual resistance.
All of this is just the basic story, the real story is a lot more complicated because we have a chopped, electrically noisy input voltage working in a resistive, inductive and capacitive circuit. In electronics speak this is an tuned oscillator with a temperature and load variable inductor. So don't muck about without careful thought. Clean properly gapped points are critical, the capacitor is critical and the ballast resistor must be sized to the coil being used. Ideally the ballast resistor should be variable such that you could adjust it according to how the coil is heating.
Does this help or is it too much tech speak?