I think the confusion here comes from the fact that you're considering an intermolecular effect such as the LJ potential and the harmonic vibration of a bond as parts of the same physical effect. When two atoms are brought together you will see the the usual curve (caused by the LJ potential if the two atoms are neutral: obviously if we talk about ions the whole thing changes) which takes into account only the attractive and repulsive effects of the nuclei and the electron clouds, and then a minimum when you reach the average bond lenght of your diatomic, just to makes things easier to explain, molecule. Now, the harmonic quantistic oscillator (the parabolic curve is in fact an approximation of the LJ curve around the bottom, considering an harmonic behaviour... sometimes also a term related to anharmonicity must be added) tells us how the molecule vibrates around the equilibrium position (the bottom of the curve, so the average lenght), and the important thing is, first of all, that there is no such thing as a completeley still atomic system (as you correctly pointed out the zero energy is not 0), and also that there's not a continuous energy change from one state to the other, but well defined steps (the lines) with constant energy differences: the old refrain that the energy is quantized. If you give the molecule enough energy the amplitude of the oscillations will increase until you'll reach a point where you will break the whole system.
Hope it's all clear now...