On the super-condensed thing... Something that most people don't realize is that there is very little there there. We are almost completely empty space, even the most dense materials are. Mostly we are electrical fields, not matter (in terms of size I mean, not weight, the weight is all from matter, which in turn is just energy.)
Anyway, the point being that atoms themselves are almost completely empty. The nucleus of an atom, where something like 99.999% of the 'matter' in an atom is, is 100,000 times smaller than the electron shell that surrounds it. And its those electron shells that make up the size of an atom, and where they hook to each other. So an atom is like a grain of sand inside a transparent globe the size of New York. All of the weight is in that grain of sand, and the transparent globe would be unbelieveable thin when blown to that size. In the middle is nothing but electric charges between the positively charged nucleus and the negatively charged electron shell, basically just empty space.
So, right off the bat, if you can strip off the electrons (which isn't terribly hard to do), you can reduce the size of an object by 100,000 times, which is a huge reduction. Neutron stars are one of the most spectacular examples of this. The gravity of the parent star isn't strong enough to create a black hole, but its strong enough to crush the electrons into the nucleus which then bind with the protons and become neutrons.
So, along with the neutrons that were already there, you end up with a ball the size of a small planet, completely composed of neutrons, and now 100,000 times denser ('stuff' per size unit, e.g. per spoonful or whatever) than the original stuff in the star. The gravity is so intense that even though it is the size of a small planet, and usually rotating very fast, if you could survive the gravity, you could reach out and put your fingers on it, because it would be atomically smooth. It won't have a mountain bigger than at atom anywhere on the surface.
The reason that such neutron stars don't collapse is something called 'degeneracy pressure', which is caused by the constant motion of all atomic particles if they are above absolute zero (and they would be very much above absolute zero in a neutron star because of the pressure induced heat.) They always are zooming around like crazy, and will fight like mad from being pushed together and stopped from zinging around.
But, with sufficient force (like that of a very large collapsing star) you can overcome that degeneracy pressure and crush the matter even further. The neutrons and protons (nucleons) in the necleus are themselves made up of quarks, which are held together by the strong nuclear force (represented by force carrying particles called gluons), and are again mostly empty space. And they themselves are in the end just pure energy.
A black hole has sufficient gravity to crush the matter all the way down to its constituent energy (more or less, if any physics majors are reading, don't sue me, we aren't doing this for money), and hence it can reduce all of the mass of that parent star that didn't get blown off in the super nova that caused the black hole (and that's still a LOT of matter), down to effectively a dimensionless point, i.e. not of this 3D universe in any way that we picture such things. The 'black hole' itself is not this 'singularity' (as its called), but just the point at which light cannot escape. Its not a physical boundary, just a point of no return. No one knows what the singularity would 'look like', assuming that term has any meaning at all and it probably doesn't in this case. Time and space are both infinitely warped in such areas, so it would be a place wierder than anything we've ever thought of.
Anyway, the point of that whole ramble is that its not so wierd to think of all of whats out there now as having come from effectively a dimensionless point. Of course, it *is* wierd, but not wierd in the sense that, despite what most people think, matter can be squished down almost infinitely, because matter is nothing but energy.