See, I am told that $(0,1)$ is not compact as a subspace of $\mathbb{R}$. Question is, how do I conclude that?
The hint says
$(\epsilon,1)_{\epsilon>0}$ does not have a finite subcover.
But I am unsure why $(\epsilon,1)$ does not have a finite (open) subcover for $(0,1)$. The right end point is fixed to $1$ so all I can do is move around $\epsilon$. So some $\epsilon$ as close as possible to zero $(\epsilon,1)$ where $\epsilon \to 0$ alone would be an open cover of $(0,1)$.
Any other $\epsilon>0$ I choose would be redundant. $(1/2,1),(1/60,1),(8/7,1)...$ whatever. These are already covered by $(\epsilon,1)$ where $\epsilon \to 1$. So that means, the open cover by $(\epsilon,1)$ is finite on its own to start with. namely, just one open subset $(\epsilon,1)$ of $\mathbb{R}$ covers $(0,1)$.
I can come up with loads of other open covers, sure, but as I said, any other open cover apart from $\epsilon \to 0$ can be removed and still be an open cover of $(0,1)$. e.g. $\{(\epsilon,1)_{\epsilon \to 0},(23/81,1)\}$ is an open cover of $(0,1)$ but I can get rid of $(23/81)$ if I want to since that still leaves me with an open cover of $(0,1)$. So the same for any infinite open cover $\{(\epsilon,1)_{\epsilon \to 1},(1/2,1),(2/5,1),(1/3,1),...\}$ I can get rid of everything that follows $(\epsilon,1)$ and be left with an open cover i.e. finite subcover.
I need some clarification here and most probably; I am mistaken with something so blatantly obvious to those with experience. Think I am a super stupid human being and explain from possible the $1+1=2$s of this bizarre world of compactness if necessary. I think someone needs to fix some basic but esoteric notion for this one.
You write
But there is no such $\epsilon$! For any positive $\epsilon$, there is a strictly smaller positive $\epsilon$ - for instance, $\epsilon/2$. And the interval $({\epsilon/2}, 1)$ will contain some points in $(0, 1)$ that $(\epsilon, 1)$ does not (for instance, $\epsilon$ itself).
While no specific interval $(\epsilon, 1)$ covers $(0, 1)$ (for $\epsilon>0$), the point is that a cover is a collection of intervals; to be a bit more concrete, consider the collection of intervals $$\mathcal{C}=\{({1\over 2}, 1), ({1\over 4}, 1), ({1\over 8}, 1), . . . \}.$$ Every point in $(0, 1)$ is in one of these intervals, so $\mathcal{C}$ is a cover of $(0, 1)$.
The specific cover being talked about above is $$\{(\epsilon, 1): 0<\epsilon<1\};$$ again, an infinite collection of intervals.
EDIT: It seems like there might also be some confusion about what infinite unions mean. Remember that $\bigcup A_i$ is the set of all things which are in some $A_i$: $$\bigcup_{i\in I}A_i=\{x: \exists i\in I(x\in A_i)\}.$$ So if $x\in A_0$ but $x\not\in A_1$, then $x\in \bigcup A_i$: the fact that $x\not\in A_1$ doesn't matter, as long as $x$ is in some $A_i$ (in this case, $A_0$) it's in the union.