it is true that rigour is eventually needed, but the principia, laplace's celestial mechanics and countless other works (heard of euler?) were all published before cauchy and weirstrass. all of the wonderful work in elliptic functions by gauss, abel and jacobi was done before rigour was en vogue. euclidean and non-euclidean geometries both flourished wonderfully w/o modern rigour (when was hilbert's book on geometry published?)Now any hard-working student of university calculus can without problems understand and reproduce the results of those treatises. I think this would not be possible without the modern systematic methods, including the epsilon-delta approach.
you're also wrong about your examples. it wasn't nowhere differentiable functions, but fourier series that motivated lebesgue. that's what the author is referring to regarding analytical traps ie, monotone convergence.
I mentioned fourier in another comments. Those weird functions were postulated in the discussion that arised somewhere in the same time period. I don't know what the author is referring to, because he is irritatingly vague, especially for a mathematician.
it is also quite a leap to assert the arithmetical definition of limits solves the zeno paradox!!! i few of my colleague's might disagree with you.
If you are familiar with the concept of a limit, you can notice that Zeno considers a limiting process of two related quantities, time and the difference in the position of Achilles and the Tortoise. Since in this limiting process time get arbitrarly close to some definite value (the meeting time of Achilles and Tortoise), but never gets equal to it, it stops being so surprising that the distance between them never reaches zero, though it gets arbitrarly close. The formalism clarifies what seems parodoxical when described in natural language. I find this quite convincing, and I never found a better explanation, altough I know philosophers still dispute this.
I never said rigour takes precedence over intuition. I just think it's the inherent difficulty of calculus that stops students from understanding it, and not the epsilon-delta stuff.