Here are some extra remarks about the argument. First, this combinatorial principle. Another illustration of the same principle is the fact that a graph is $k$-colorable if and only if every finite subgraph is $k$-colorable. If the graph only has countably many vertices, then there is a standard proof by induction; it is only the uncountable case that requires something fancier such as the ultrafilter lemma or Tychonoff's theorem. In fact, the case that's needed is almost the same as the $k=2$ case of colorability. This case, and the orientability argument, is even easier than the general case because the local coloring or orientation is essentially unique.
Second, cleaning up the atlas so that every chart is an interval and a non-empty intersection of any two charts is an interval. The first condition is sometimes part of the definition of an atlas. But if not, every open set in $\mathbb{R}$ is a countable union of intervals (or every open set in $\mathbb{R}^n$ is a countable union of balls) and you can just make them separate charts. As for the second condition, using the intermediate value theorem and the Hausdorff condition, two interval charts can only intersect at one end or at both ends. If they intersect at both ends, then all of the other charts are redundant and the manifold is a circle.
