The "standard topology" on $\mathbb R$ contains all the "open sets" on it. By open sets I don't mean "the sets that are in the topology", which would make the statement a tautology, but I mean the open intervals $(a,b)$, (which we can talk about prior to defining a topology).
My question is, why don't we define the "standard topology" as the topology generated by all the "closed intervals"? Why do we single out the open intervals only?
In addition to other answers let me write about a motivation behind the concept of topology.
Originally people were working with metric spaces $(X,d)$. But they quickly realized that there are properties sort of independent on $d$. For example for any $r\in\mathbb{R}$, $r>0$ consider
$$d_r:X\times X\to\mathbb{R}$$ $$d_r(x,y)=\min(d(x,y),r)$$
it can be easily seen that each $d_r$ is a metric and there are at least infinitely many different $d_r$ in the sense that there is an infinite subset $D\subseteq\mathbb{R}$ such that if $r,s\in D$, $r\neq s$ then $d_r(x,y)\neq d_s(x,y)$ for some $x,y\in X$.
But the following holds:
So even though these are different metrics they imply the same concept of continuity. That's because what really decides about continuity is those smaller and smaller values of $d$, not those "big" values of $d$. This idea led people to create the concept of topology. By isolating these properties of $d$ that decide about continuity.
And once it was created it was clear how to define a topology from a metric:
It can be shown that the set of all "metric-open" subsets of $X$ forms a topology on $X$. And this topology plays well with the metric:
Note that it is essential to define the topology via open balls (corresponding to open intervals in $\mathbb{R}$). Otherwise (for example if you define via closed balls) the lemma is not true. Generally there's only one topology generated from closed balls (note that singletons are closed balls): the discrete topology, i.e. everything is open and everything is continuous. Boring.
Also note that topologies determine continuity uniquely in the following sense:
So the concept of topology is the one that describes continuity uniquely. Unlike the concept of metric. I'm not saying that metrics are useless or worse. They are very important and have their applications elsewhere. But in this particular context topology is better.
With that in mind the definition of the standard topology on $\mathbb{R}$ comes from the standard metric on $\mathbb{R}$, i.e. the Euclidean one $d(x,y)=|x-y|$. Note that the definition you gave and the one I give are equivalent.