> What is f'(0), the derivative of f at 0? It
doesn't even exist, therefore it has no discontinuity at 0.
This is definitely wrong. The derivative of |x| is -1 where x < 0, and 1 where x > 0, and doesn't exist where x = 0. That is a perfect match to the definition of a jump discontinuity -- the limit from the left is not equal to the limit from the right.
It's not at all necessary for the function to exist at x = 0 in order for it to have a discontinuity at x = 0.
But hey, don't take my word for it; why not check the definition on Wolfram?
http://mathworld.wolfram.com/JumpDiscontinuity.html
The original claim was "the derivative, if it exists, cannot have a jump discontinuity." This is badly stated. You're defending the idea that if the derivative exists at a particular point, then there is no jump discontinuity in the derivative at that point. But there can be a function f which satisfies both of these properties:
- f is the derivative of some other function F. ("The derivative of F exists.")
- f has a jump discontinuity, somewhere. ("The derivative of F has a jump discontinuity.")