I understand that a vector has direction and magnitude whereas a point doesn't.
However, in the course notes that I am using, it is stated that a point is the same as a vector.
Also, can you do cross product and dot product using two points instead of two vectors? I don't think so, but my roommate insists yes, and I'm kind of confused now.
What exactly is a vector? You are right that we usually consider a vector as something that has a direction and a magnitude, but there more precise and abstract definition is that a vector in, for example, $\mathbb{R}^n$ is just an element of that set. So it is the same as a point when you consider it as an element of a set.
Now if you want to talk about cross products and magnitudes, then it becomes a question about linguistics. The way you, for example, define the magnitude as the function $$ \lvert\cdot\rvert: \mathbb{R}^2 \to \mathbb{R} $$ given for $a = (a_1, a_2) \in \mathbb{R}^2$ by $$ \lvert a \rvert = \sqrt{a_1^2 + a_2^2}. $$ So if you insist on talking about the magnitude of a point, then you are "free" to do so (i.e. free to define this). But bare in mind that you will also cause confusion by doing this. And with doing math, we want to communicate clearly and so ...
In the same way, you could define the addition or cross product of points.
Maybe it would be better to say this: Is the vector space the same as a set? Yes, a vector space is a set. But it is also more than a set. We can't add elements of a set, but we can add elements of a vector space because with a vector space you get the definition of an addition. So in this sense, a point and vector are very much different.
Added: If you want to find the equation of a plane that contains the three points $a$, $b$, and $c$, then you would not subtract the points. So how do you so it. Well, if the coordinates to point $a$ are $(a_1, a_2, a_3)$, i.e. if $a = (a_1, a_2, a_3)$, (and likewise for $b$ and $c$) then you first define the vectors $$ \vec{ab} = (b_1 - a_1, b_2- a_2, b_3 - a_3) $$ and $$ \vec{ac} = (c_1 - a_1, c_2- a_2, c_3 - a_3). $$ Then a normal vector for/to the plane is the cross product of the vectors: $\vec{ab}\times \vec{ac}$.