This question is related to the third answer in this post.
There seems to be a difference between the intuitive idea of a thing (such as a function) and "models" of that thing in mathematics (such as the way we view functions as being a kind of set of ordered pairs). Another instance of this is the natural numbers and the set-theoretic construction of the natural numbers. If our set theory does not have an axiom of infinity which allows us to define $\mathbb{N}$, then are we disallowed the use of induction? Or is induction something "we just believe" independent of any model? A concrete question that comes to mind is: if there was no axiom of infinity, could we prove the statement "If $X_1,\dots,X_n$ are sets, then there exists a set $\{X_1,\dots,X_n\}$"? (this is a statement that I believe requires induction and the axiom of infinity). Could "$X_1,\dots,X_n$" even be stated without the formal notion of $\mathbb{N}$?
My questions are this:
1) Do the formal models, such as set theory, actually justify "intuitive mathematics"? My feeling is that they don't. I take the numbers $0,1,2,\dots$ and induction for granted (conceptually prior to set theory).
2) If not, then why is the formality of set theory often used as justification for "intuitive mathematics"? For example, you might see authors explaining induction by mentioning the inductive set, which is kind of irrelevant if induction is something we just take for granted.
3) Are there textbooks or documents which attempt to outline what constitutes "intuitive mathematics" without appealing to models or the formality of set theory?
I guess I'm interested in understanding "what comes first". What should we all take for granted? What is the metatheory (is this the right word?)?