@Majora
It's mostly true, except for one part. Observation doesn't make a wave turn into a particle but rather causes the superposition of states to collapse into one eigenstate associated with the observation. Schrodinger's cat is the classic thought experiment. The eigenstate isn't necessarily a particle, and if you ascribe to Heisenberg's view the resulting observed thing is always a particle and wave. Bohr, the primary architect of the Copenhagen interpretation, thought it could be either a particle or wave but not both, depending on the observation itself.
Keep in mind, though, that the Copenhagen interpretation isn't the only one and isn't even really a solid interpretation, just a vague framework a lot of scientists work in to engender a sense of intuitiveness. All of the fuzzy stuff is continuously debated.
The confusion probably comes from the typical understanding in which the wavefunction is a statistical distribution. That's not necessarily wrong but doesn't get at the heart of the matter. If you took any higher level physics, then the quantum states of a particle in a infinite square well are a good example. Each is associated with a wavefunction where the width of the box is an integer multiple of the wavelength, which is inversely proportional to energy. If you measure the energy it collapses to one energy level, which corresponds with one state. Interestingly, if you do it to a particle in a 2D box it still collapses to one energy level but one energy level can correspond to one or multiple states: you don't know which exact state in some cases, you just know the energy. That's called degeneracy.