The Mathematics of the Gods and the Algorithms of Men: A Cultural History
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This idea, of the immaterial nature of numbers is the notion of platonic forms. That idea came from the pythagoreans who claimed that the universe is fundamentally made of numbers -- and that there are certain harmonies in numbers that result in order and beauty in the cosmos.
Argh! It makes a crucial difference if you want not to be slaves to a dream! Beware: there's no such thing as "Tuesday". And Dollar is a small god.
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Anyhoo, operationally numbers come from counting, which comes from a cyclops matching up pebbles and sheep. Eventually someone gave names to the pebbles, and then someone (else?) realized that you could do without the actual pebbles, and there you are: numbers.
And yeah, math is very useful, culminating in the Standard Model and the Universal Machine and other fun stuff that I don't have to belabor here, eh?
Metaphysically (literally) numbers are each a kind of archetypal entity or quality (and see also "Sacred geometry") that are somehow "real" w/o being made out of any real stuff (protons, neutrons, electrons, pebbles, etc.)
It can be fun to reflect that e.g. the C language is of the same epistemological status: there are books on C, and C compilers, and C code, and so on, but the C language itself is no more (or less) real than the number two or Tuesdays.
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And yeah, Western history tends to ignore a lot of the world outside the West. This isn't confined to math. Ever try to read about African history other than Egypt?
And, does the concept of one/whole exist before sets?
For example, the category of finite sets without an NNO [1] is simpler or more foundational than the set of natural numbers. At the same time, this category is actually a category of numbers.
My point is that numbers are complicated by nature, but they are more intuitive for humans (mostly I think) than sets are. Sets are simpler or more basic, but often less intuitive for humans.
So, yes, idea of finite sets is prior to numbers, but numbers were formalized before the idea of sets was formalized, IMO, FWIW.
1 := {}
2 := {{}}
...
n+1 := {n}
This is the simplest set-based description of the natural numbers that I know, and it's very unwieldy -- one might like to construct negative numbers and zero; describe algorihms to perform arithmetic, etc. But it's all quite manageable and a satisfying exercise if one takes the time.
0 := {}
1 := {{}} (= {0})
2 := {{}, {{}}} (= {0, 1})
3 := {{}, {{}}, {{}, {{}}}} (= {0, 1, 2})
n+1 := {0, 1, 2, ... n}
This has the advantage that the numbers are equal to the cardinality of the sets that define them. In the construction you gave (which I agree is conceptually easier), the cardinality of 1 is 0, and then the cardinality of every greater integer is 1.
A cool feature of this version is
x < y := x ∈ y
[1] https://en.wikipedia.org/wiki/Cardinal_number [2] https://en.wikipedia.org/wiki/Ordinal_number