You are correct, Patrick. Common "cures" for too much heat are ice cream, whipping cream, sugar-and-cottage cheese, carrots, sugar...all have sugar in them in some form. The dairy aspect of these concoctions relates to how the capsaicin oil sticks in the mouth. When selling at Farmers markets, I have a tub of sugar on hand for those who get in over their heads.
http://en.wikipedia.org/wiki/Scoville_scale
"Scoville organoleptic testIn Scoville's method, an alcohol extract of the capsaicin oil from a measured amount of dried pepper is added incrementally to a solution of sugar in water until the "heat" is just detectable by a panel of (usually five) tasters; the degree of dilution gives its measure on the Scoville scale. Thus a sweet pepper or a bell pepper, containing no capsaicin at all, has a Scoville rating of zero, meaning no heat detectable. The hottest chilis, such as habaneros and nagas, have a rating of 200,000 or more, indicating that their extract must be diluted over 200,000 times before the capsaicin presence is undetectable. The greatest weakness of the Scoville Organoleptic Test is its imprecision, because it relies on human subjectivity. Tasters taste only one sample per session."