Let $A$ be a complex Banach algebra and $h:A\to\mathbb{C}$ a homomorphism.
Let $h=0$ then the problem is trivial, so suppose that $h\ne 0$. Then there exists $x\in A$ with $h(x)\ne 0$ such that $h(x)=h(ex)=h(e)h(x)\implies h(e)=1$.
Now, we set $y=x-h(x)e$. Why does this belong to $\mathscr{N}(h)$? In a proof I have read it is claimed that $1=h(y y^{-1})=h(y)h(y^{-1})$, which is supposedly "impossible"; but I don't see how? And then it's claimed that this implies that $h(x)\in\sigma_{A}(x)$ and the conclusion is that $|h(x)|\le\|x\|$.
Would someone be able to explain why these final steps hold?
To explain the argument that you read: You have $h(y)=0$. Suppose $y$ is invertible, $yy^{-1}=e$, this implies that $h(yy^{-1})=h(y)h(y^{-1})=h(e)=1$. This is impossible, so $y-h(x)e$ is not invertible. This implies that $h(x)$ is in the spectrum of $x$. The spectrum of $x$ is contained in the disc of radius $\|x\|$. This implies that $|h(x)|\leq \|x\|$ and this also implies that $h$ is continuous and since $\parallel e\parallel=1$ and $h(e)=1$, result is that $\parallel h\parallel=1$.
https://en.wikipedia.org/wiki/Banach_algebra#Spectral_theory