>What am I missing in the intention or meaning of the “i” part?
**You are missing the elegancy, and that’s it.**
Hamilton’s approach was exactly like you thought – 2D reals equipped with special algebra. This is in principle the same as the complex number, in the sense that the special algebraic structure R^2 is homomorphic to C.
Historically speaking, the imaginary unit was introduced to complete closed polynomial roots. In other words, given any polynomial equation, you wanted to find a number system that is closed for all the roots.
For example, the roots of x^2 +1=0 is non-existence in ‘conventional’ number system (ie, the reals.) To workaround this issue, you need to add some auxiliary part. An elegant way to do that is by defining the *i* (this was Euler’s idea).
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