Translation:That thing is like that.
Could you use this in a more colloquial way such as "That's that"? As a way to end a conversation, I mean.
I don't understand with "저" when it wants me to type "that _" or "that _ over there". is it only when i have all 3 (이, 그, and 저)?
I think (but I'm not sure) it's more like since English uses 'that' for both of them and doesn't really make the distinction most of the time, you just have to develop an intuition of different situations and when each of them is used. It might even be that a lot of the time both options are accepted while other times one word is part of a fixed expression.