When say that comparison sort is O(n * lg n), we're assuming a computational model where comparing two integers is a constant time operation. That's true in most physical computers when we use the CPU's comparison instructions. It's also true in any theoretical model where we define a (finite) largest possible integer. So it works well enough.
I’m pointing out that, for example, comparison sort is only O(n * lg n) in theory if the theoretical model of computation we’re dealing with can compare any two items in constant time. Comparing arbitrarily large integers can not be done in constant time in theory, so if that’s the problem we’re discussing then the complexity will not be O(n * lg n). But again, we generally are implicitly concerned with models of computation where comparison is a constant time operation.
Yes, Big O notation measures asymptotic growth of functions. But what do those functions express? For them to express running times, you need to define a machine model. It's a model because it's not a real machine – we don't stroll into a computer shop and pick up some computer and use that as our reference. Instead, we define an abstract machine model. Often, that's the word RAM model which assumes that for an input size n, the machine can process words of size θ(log n) in constant time. This is reasonable close to how our actual computers work: 64-bit words, and we can do stuff with them in constant time. But it's not perfect, because the RAM model doesn't have any caches (let alone multiple levels of cache hierarchy), doesn't have disks, doesn't model the paging system, etc. If any of these things are of significant concern to you, pick a different model (e.g. an external-memory model to consider memory hierarchy, or look into cache-oblivious algorithms, ...).
But talking about asymptotic running time without specifying which model you're using is absolutely pointless.
I don't have formal CS education. I'm less interested in math and more oriented towards practical aspects. Infinity doesn't exist in practice (except these IEEE float magic values), but we can reason about shape of functions, e.g. "count of executed machine instructions as a function of N".
Not the same thing as CS-defined big O, but close.
Can be useful to reason about complexity of algorithms. More precisely, about complexity of their implementations.
Usually useless to reason about time: a machine instruction takes variable time to run on a modern CPU, the same instruction can take less than 1 cycle or much more than 1M cycles.
If you want to talk about something like supporting arbitrarily large integers or defining the memory of the physical computer we're using, we need to be explicit about that, because it changes a lot of things. After all, a finite-memory computer is not Turing complete, and everything it can compute can be computed in constant time. :)
I thought that big-O does not actually consider the underlying hardware. How can you specify the CPU model / instruction conditions and still use the semantics of big-O analysis? The mathematical definition of O(_) does not involve hardware, it implies that there exists some coefficients and a constant. I get the point you are making but is big-O an appropriate way of measuring in this context?