This is a more entry-level Calc-1 answer.
First of all, you are confusing an undefined operation with a limit that does not exist (normally abbreviated "DNE") and with an indeterminate form of a limit. These three concepts are totally different and should not be confused.
To begin with, forget about limits.
Division by zero is undefined because... it is not defined. Nobody defined what $\frac{n}{0}$ is. (Well, several people tried to but mathematicians at large didn't agree).
There are good reasons for that. Starting with a naive one, what does it even mean to divide 6 chocolates among 0 friends? You can think about dividing 6 chocolates among 6 friends (1 each), 3 friends (2 each) or 18 friends (1/3 chocolate each). You can even conceptualize dividing zero chocolates among 5 friends: Each of them receives zero chocolates (hence 0/5 is 0). But dividing something among zero people doesn't make sense. Hence, there is no accepted definition for dividing by zero. For more mathematically strict reasons, see the previous comment.
Now, going into limits... Remember, when you calculate the limit of a function of x as x tends to zero you are asking what happens to the function as you get closer and closer to zero, but not all the way to zero.
That means that when you evaluate $\lim \limits_{x \to 0} \frac{n}{x}$, $x$ may be as close to $0$ as you want but never $0$ itself. So you are not dividing by zero.
The reason why $\lim \limits_{x \to 0} \frac{n}{x}$ DNE (does not exist) (NOT "it's not defined") has nothing to do with dividing by zero, and everything to do with the fact that when you approach the limit from the left (x= -1, -0.1, -0.01, -0.000001) the function tends to minus infinity, while when you approach the function from the right (x= 1, 0.1, 0.01, 0.00001) the function tends to plus infinity. By definition (or rather as a corollary of the epsilon-delta definition of limit), the limit will only exist if the limit from the left approaches the same value as the limit from the right.
As a counter-example, take $\lim \limits_{x \to 0} \frac{n}{x^2}$.
You are still dividing by something that tends to zero, but this limit does indeed exist and it is plus infinity (assuming that n is positive), because now the denominator is always positive so the quotient is always positive as x approaches zero from either side.
The indeterminate form of a limit is just a limit that you can't know "at first sight" what the result will be, if it happens to exist at all. It just means that you have to keep working to see if it exists and what it is, or if it does not exist. A classic example is $\lim \limits_{x \to 0} \frac{\sin x}{x}$. Both $\sin x$ and $x$ tend to zero when x tends to zero. Furthermore, both $\sin x$ and $x$ are positive for positive values of x close to zero, and negative for negative values of x close to zero. That means that the limit can be plus infinity if the denominator shrinks at a rate orders of magnitude faster, 0 if the numerator shrinks at a rate orders of magnitude faster, a given number if the numerator and denominator shrink at a similar rate, or it may even not exist if the relative shrink rate of the numerator and denominator is different as we approach zero from the left or from the right. We just need more work, and more work indeed will show that this limit exists and it is equal to 1.
Now, 0/0, not the limit, but the actual division, is not indeterminate. It is undefined because, again, dividing by zero is not defined.
So the last part of your argument actually has several mistakes:
0/n=0... so far so good
0=0n... still good, you just multiplied both sides by n
0/0=n is not good. You just tried to divide both sides by zero, but you can't divide 0n by zero, or 0 by 0 because, again you can't divide by zero, it is not defined.
And finally, when you said 0/0 is indeterminate, no it is not. It is very well determined that dividing by zero is not defined, so it is not indeterminate but undefined.
Again, don't confuse that with having a LIMIT where both the numerator and the denominator TEND to zero, which means that they are NOT actually zero. They can be as close to zero as you want, but they cannot reach all the way to actual zero.
So, finally, as a summary, and risking being repetitive, remember:
$\frac{n}{0}$ is UDEFINED, because division by zero is not defined
$\lim \limits_{x \to 0} \frac{n}{x}$ DNE (does not exist). You are not actually dividing by zero so it is not undefined. The limit of that function when x approaches to zero does not exist because when you approach from the left the limit does exist but you get a different result than when you approach from the right, where the limit also exists. Other limits where the denominator tends to zero do exist.
$\lim \limits_{x \to 0} \frac{\sin x}{x}$ is neither undefined nor "does not exist (DNE)". And it's not 0/0 either. The numerator tends to zero and the denominator tends to zero too so we call it a 0/0 form, but that's just a name, we are not actually dividing 0/0. We say such limit has and UNDETERMINED FORM because you cannot apply the simple rules for when you divide by zero to tell if the limit exists and what it is if it does. You need more work (use the definition of limit, or use the L'Hopital's rule to see if the limit exists or not and, if it does, what it is (in this case it exists and it is 1).
Undefined, "does not exist (DNE)", and "undetermined form". Three very different concepts that must not be confused.