Agree about the theorem. Not sure about the implication for explaining integers, since a human who has been assigned the task of decoding the string should have the same difficulty with that infinite input stream. His understanding of what an integer is doesn't protect him. What seems to me to protect the human from being mentally trapped by an endless input is that his tolerance for the task is finite and eventually he'll quit. If that's all it is, then what you need to teach the computer is impatience.
It still feels very weird to me that we cannot explain our intuitive notion of "finiteness" to a machine. Maybe this shows that we don't understand finiteness very well yet.
Followup to: What's a "natural number"?
While thinking about how to make machines understand the concept of "integers", I accidentally derived a tiny little math result that I haven't seen before. Not sure if it'll be helpful to anyone, but here goes:
You're allowed to invent an arbitrary scheme for encoding integers as strings of bits. Whatever encoding you invent, I can give you an infinite input stream of bits that will make your decoder hang and never give a definite answer like "yes, this is an integer with such-and-such value" or "no, this isn't a valid encoding of any integer".
To clarify, let's work through an example. Consider an unary encoding: 0 is 0, 1 is 10, 2 is 110, 3 is 1110, etc. In this case, if we feed the decoder an infinite sequence of 1's, it will remain forever undecided as to the integer's value. The result says we can find such pathological inputs for any other encoding system, not just unary.
The proof is obvious. (If it isn't obvious to you, work it out!) But it seems to strike at the heart of the issue why we can't naively explain to computers what a "standard integer" is, what a "terminating computation" is, etc. Namely, if you try to define an integer as some observable interface (get first bit, get last bit, get CRC, etc.), then you inevitably invite some "nonstandard integers" into your system.
This idea must be already well-known and have some standard name, any pointers would be welcome!