That is a good way to understand it. Another way is to solve a simple circuit containing at least two inductors with a high coupling coefficient. Just a voltage source across the primary and a resistor across the secondary is enough for that purpose.
The fuse should blow for the reasons given in that text you have. The limit is affected by the circuit resistances or impedances in series with the primary and secondary.
An isolation transformer is safer because it reduces the chances of a person completing a circuit carrying the 5-10 mA normally required for a dangerous shock (in healty people). It does not limit the current to a degree effecting safety.
Voltage sufficient to electrocute with no more help that a person completing a circuit is usually considered more dangerous than current which requires a good conductor (not a person) to flow and whose main danger is a burn from the short created by that conductor.