Yosemite won't uncompress .zip files when I double-click on them

I recently upgraded to Yosemite (10.10.1). Today I tried to unzip a .zip file for the first time since upgrading.

I already had 4 or so unzipping apps that worked just fine on my previous OS X, so I just double-clicked on the .zip, and Yosemite tried to open the .zip with the default unzip app.

Unfortunately, I then discovered that the default unzip app and all of my other ones were not compatible with 10.10.

I checked online and found that according to Apple, in 10.10, to unzip a .zip, you just double-click on the file and Yosemite would unzip it for you.

However, whenever I double-clicked on the .zip, Yosemite would only try to open it with the incompatible default unzip app.

So I deleted all my unzip apps and rebooted.

When I then checked my .zip files, I noticed they all were defaulting to open with TextEdit. When I double-clicked one .zip file, I got this message:

When I double-clicked another .zip file, I got this message:

So the question is does anyone know how to get Yosemite to open a .zip given this situation?