Coordinates and distances are independent concepts. They are function from the space you are working with into the reals assigning each respectively each pair of elements a real number for each coordinate respectively one real number for the distance. You can for various reasons choose coordinates and distances in a way such that they have simple mathematical relationships but that is just an arbitrary choice. The classical law of gravity is only dependent on distances, which is a physical meaningful concept, but not on coordinates, which are not physically meaningful. In that sense distances are fundamental in a way in which coordinates are not and a distance of zero is a meaningful thing, namely two things are at the very same place.
This is assuming mostly Newtonian physics, of course. Once you start dealing with fields and quantum mechanics, none of this makes as much sense.