For example the graph $f(x) = 1/x$ approaches $\infty$ at $x=0$ but we would not say this is an infinite discontinuity, just an asymptote, correct? Unless we specifically said the domain of the function included $x=0$? Or must domains by definition exclude discontinuities and undefined points?
Do discontinuities only exist if we can "split" the domain into two new non-empty intervals that each exclude the discontinuity?
Continuity is only defined at points within the domain of the function . Since a discontinuity is usually defined as a point where the function is not continuous, that must be within the domain as well. It would be meaningless to say that $\,\sqrt{x}\,$ is discontinuous at $\,x=-1\,$, for example.
The domain can not include "undefined points", by definition.
The domain can include discontinuity points, and often does, for example the integer part function $\,f(x) = \lfloor x \rfloor\,$ is defined on $\,\mathbb{R}\,$, which includes all the discontinuity points $\,x \in \mathbb{Z}\,$.