Earlier quoted context omitted.
> You may recall that constructing an intersection automaton involves a cross product of NFAs I'm not sure what you mean by "cross product" here, but there's nothing multiplicative involved. You just run both NFAs simultaneously. This gives you a number of states to track equal to the sum, not the product, of the two NFAs being intersected.
That's one way to perform the computation, but that's not an NFA. The product construction involves making a single new NFA to do the job.
If you loosen the definition of "NFA" that you're working with from requiring a set of final states to requiring a function from a set of states to {0, 1}, everything will still work exactly the same way, all of your theorems will still hold, but intersecting two NFAs will consist of adding one state and adjusting the accept function.