This only makes sense if you consider a `contains` method to only take the arguments passed inside of the parenthesis. But in actuality there is an implicit `this` argument too. Armed with this knowledge it becomes trivial to see how the total input to the function is `N + 1` values. `N` being the length of the function, and the `1` representing the thing we're searching for. Since constant values in complexity theory are handily ignored we get an input of size `N`.

And as to your second point, the choice of what is and isn't a constant-time operation is generally a practical concession. There's no reason to say "you can't say anything about any algorithm because it's an implementation detail" here. The conversation is specifically about element presence in an unsorted array. A very simple, easily understood, and unambiguous algorithm. Bringing up the runtime of the operation in a hashtable or in tree-structures is entirely nonsensical and just destroys any conversation there is to be had.