The proof in the text seemed pretty straightforward to me. We've already proved y^n < x leads to contradiction. Now:
Let y^n > x. We define k as [tex]k = \frac{y^n - x}{ny^{n-1}}.[/tex] So 0 < k < y. Now we consider all t such that [tex]t \geq y - k.[/tex] For such t, we have the following:
[tex]y^n - t^n \leq y^n - (y - k)^n[/tex] by substituting in for t.
Now, since [tex]b^n - a^n < (b-a)nb^{n-1}[/tex] for 0 < a < b, and since 0 < y - k < y, we have
[tex]y^n - (y - k)^n < kny^{n-1}.[/tex]
Which, by our definition of k, is equivalent to
[tex]y^n - (y-k)^n < y^n - x.[/tex]
Thus, [tex](y - k)^n = t^n > x.[/tex]
Therefore, [tex]t \notin E[/tex], and is an upper bound of E. Thus, y - k is an upper bound of E, which contradicts our definition of y as the least upper bound of E. Hence, since we proved y^n < x and y^n > x both lead to contradictions, we find that y^n = x....I know I just repeated the whole proof...but I added a few clarification notes that I hope help because the rest should be pretty straightforward. By the way, what was your fixation with deriving h? That was for the first part. And it wasn't so much as derived as it was simply chosen because it works. That's often how math proofs like this work. The key is realizing the connection in the end.