No O(√N) is O(N^0.5)
"That I use Big O to analyze time and not operations is important."
This strikes me as an odd statement though as Big O is generally meant to describe a run time or space not operations. What am I missing?
When he says he's using big O for time and not operations, he's saying that n is time (as opposed to operations)
Some models where such things are studied in more details include the external memory model (which has a two-level hierarchy - cache and main memory, or main memory and disk) and cache-oblivious models.
Most of the time, you don't need that extra information, though, and the RAM model suffices.