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Quick question: why are limits called limits? Is there some kind of connection or analogy to epsilon-delta type limits in analysis?
There is, but I think historically the terminology comes from 'inductive limits' and 'projective limits' in algebra
And since they are basically a limiting process, it's easy to see why they were called like this. I've no serious clue about the adjectives 'inductve' and 'projective' though.
Limits do capture some primal intuition about limiting processes on a sequence of objects. For example if is a set then the "limit" of the sequence should obviously be . I'd write that even if I'd never heard of category theory
(I think that's formally the limit of a chain, but maybe it's a colimit, I'm too lazy to work it out properly on a saturday morning)
As for whether there is a relation: https://math.stackexchange.com/questions/60590/category-theoretic-limit-related-to-topological-limit