Let $\mathsf{I}$ be an operator that takes as input $x$ and returns $x$. Then $\mathsf{I}$ is not a function.
1 Why is this not a function?
According to Lambda Calculus and Combinators, $\mathsf{I}$ is not a function in the set theoretic sense (that is, $\mathsf{I}$ cannot be represented as a set of ordered pairs):
In ZF, each set $S$ has an identity function $\mathsf{I}_S$ with domain $S$, but there is no 'universal' identity which can be applied to everything.
Question 1: Is this because if $\mathsf{I}$ were a function, then its domain would be some universal class $U$ that contained everything (and hence would run into Russell's paradox, implying $U$ cannot be a set)?
2 Why can't set-theoretic functions be applied to themselves?
Consider that $\mathsf{I}x = x$ implies that $\mathsf{I} \mathsf{I} = \mathsf{I}$. This seems to make sense.
But this implies that $\mathsf{I}$ is in its own "domain", which can evidently never happen in ZFC:
[T]he axiom of foundation ... prevents functions from being applied to themselves.
Now the axiom of foundation, according to Wikipedia, states in English that
[E]very non-empty set $A$ contains an element that is disjoint from $A$.
But it hardly seems evident from this why this means a function cannot be applied to itself.
Question 2: Why can a set theoretic function $f$ not be in its own domain?
3 Modeling operators in ZFC
The operator concept can be modelled in standard ZF set theory if, roughly speaking, we interpret operators as infinite sequences of functions (satisfying certain conditions), instead of as single functions.
The author does not explain how this works.
Question 3: How do we model operators like $\mathsf{I}$ in ZFC?