This is not an answer but an answer to some comments which is simply too long to be a comment itself:
Intuitively this construction feels like a four dimensional space, but it's not. Is there some graphic or layman's explanation that would make it more clear what is actually happening in this construction?
I do not have a graphical explanation. The crucial point indeed is that the space is not four dimensional. If you are familiar with group presentations, a very similar issue occurs. Suppose you have a group generated by a bunch of elements ($a,b,c$) and you are giving a bunch of relations in between those elements ($a^2b=cb, \dots$). It is possible that you have so many relations that one does not really need all generators (for example $a^2b=cb$ implies that $a^2=c$ and thus $c$ is redundant). In this you at first might be tempted to think that this group needed three generators, but actually less suffice.
Your facebook guy did something similar. At first glance it looks like you need 4 independent vectors te express everything, but these vectors are really not independent. That's the crux of the current story.
Or alternatively, what would be the implications if we were to suppose that $z^2=i$ had more than two solutions?
If $z^2-i=0$ has more than two solutions, you cannot be working in a field. Indeed, you can easily prove that any polynomial $P(X)\in K[X]$ of degree $n$ over a field $K$ cannot have more than $n$ roots. The proof is straightforward as soon as you have the division algorithm for polynomials over a field.
Edit: I'll include a proof of the latter statement. Let $P(X)\in K[X]$ be a polynomial. We can write $$P(X)=\sum_{i=0}^na_iX^i$$ with each $a_i\in K$ and $a_n\neq 0$. First note that we may assume that $a_n=1$ by multiplying the polynomial by $a_n^{-1}$ (here I use that $K$ is a field). Furthermore, doing so does not change the roots of $P(X)$ (that's a claim that you can prove as an exercise).
Now I claim the following: If $c\in K$ is a root of $P(X)$ (i.e. $P(c)=0$), then $$P(X)=(X-c)Q(X)$$ for some polynomial $Q(X)\in K[X]$ with $\deg(Q(X))=\deg(P(X))-1$. Indeed, by the division algorithm for polynomials, one can write $$P(X)=(X-c)Q(X)+R(X)$$ where $Q(X),R(X)\in K[X]$ and $\deg(Q(X))\leq \deg(P(X))$ and $\deg(R(X))<\deg(P(X))=1$. By assumption, $P(c)=(c-c)Q(c)+R(c)=R(c)=0$. On the other hand, $\deg(R(X))=0$ and thus $R(X)=0$ as it is a constant polynomial. Thus $P(X)=(X-c)Q(X)$ as required.
Hence we now showed that if $c$ is a root of $P(X)$, then we find that $P(X)=(X-c)Q(X)$ with $\deg(Q(X))=\deg(P(X))-1$. Now assume that $P(X)$ has more roots than its degree. Iterating the above procedure, you find that $P(X)=(X-c_1)(X-c_2)\dots (X-c_m)Q(X)$ with $m>\deg(P(X))$, but then $\deg(P(X))\geq m$, a contradiction!