Yes, you assume it has three components. And do the same for $r$, and then compute away.
Alternatively, you can draw a few pictures, and realize that $\omega', (\omega \times r)',$
and $(\omega \times r)' \times r'$ is an orthonormal basis in which this statement becomes particularly simple, where primes denote unit vectors. (This does't handle the case $r = 0$, but that one's easy.)
This is also a fundamentally 3D statement, since cross product of two vectors is only defined there.
A slightly different proof: regard the left and right-hand sides as functions of $\omega$. Clearly both are linear. So we may simply consider the case where $\omega$ is a unit vector. A similar observation (both sides quadratic in $r$) reduces us to the case where $r$ is a unit vector. Fix $r$, and consider three independent possibilities for $\omega$:
$\omega = r$; in this case both sides are zero, and equality holds.
$\omega$ is a unit vector $v$ perpendicular to $r$. In this case the rightmost term is zero, and a simple geometric argument shows that the left side and the left term of the right side agree.
$\omega$ is $v \times r$; then $\omega$ is again perpendicular to $r$, so the same argument holds.
Since both sides are linear functions of $\omega$ and they agree on a basis, they agree everywhere.
Not a coordinate in sight! :)
$$
\newcommand{\e}{\mathbf e}
$$
A final proof: Cross products and dot products are both invariant under rotations, so if the equality holds for $\omega_0$ and $r_0$, it also holds for $\omega$ and $r$, where $\omega = R \omega_0$ and $r = R r_0$, and $R$ is some rotation.
Now to prove the theorem, let $R$ be a rotation that takes $e_3$ to $r$ and some vector $v$ in the $\e_1\e_3$ plane to $\omega$, say, $v = x\e_1 + z\e_3$. We'll show the theorem's true with $\e_3$ and $v$ playing the roles of $r$ and $\omega$, and be done.
In this case,
$$
LHS = \e_3 \times ( (x \e_1 + z \e_3) \times \e_3) = \e_3 \times ( -x \e_2 ) = x \e_1
$$
while
$$
RHS = 1 (x \e_1 + z \e_3) - (\e_3 \cdot (x \e_1 + z \e_3)) \e_3 = (x \e_1 + z \e_3) - (z) \e_3 = x \e_1,
$$
and we see the two sides are equal.