You are correct but if the output is fed straight back to the inverting input (and assuming it is unity gain stable) you do not get any again amplification, you have created a signal buffer.
The virtual ground is a point where the incoming signal and the feedback are equal but opposite polarities so they effectively cancel out. You will normally see this where the source and feedback are connected through resistors and meet at the vitual ground point. If you measure signal voltage from the virtual to the real ground you would see (almost) nothing but in reality there is current flowing into the point from both directions.
Brian.