"I've seen what you will become otherwise"

I think this is the key. Both Harry & Voldie were dead. Harry's soul and body was fine. Voldie - nothing but the barest resemblance to someone living - scared, whimpering, cowering and alone. Absolutely no glory.

I think that quote means that Harry new it was Voldie that he was looking at.

The scaly flaky baby was not the horcrux - but Voldie in the afterlife. if you believe in heaven, or karma, or whatever.... it does give the impression that even for wizards - there are consequences that are eternal based upon ones actions in this life.