We see from Figure 2 that as $\theta$ shrinks, the length $\sin(\theta)$ of the segment gets closer and closer to the length $\theta$ of the curved arc. We conclude that as $\theta\to0$, $\dfrac{\sin\theta}{\theta}\to 1$.
This proves nothing at all: saying that the cathetus gets closer and closer to the arc is exactly the same as saying the sought limit is $1$. This fallacy is commonly known as begging the question.
Yes, it might be “intuitively clear”, but one of the aims of mathematics is avoiding intuition, that can lead to mistakes. It's not difficult to find functions that, tested on a single precision calculator, seem to have a certain limit, but actually have another: we don't really know what happens when the angle “shrinks so much that we're not even able to make a drawing”, which is the same issue as with the kind of limit described above.
There are different levels of rigor, of course. Also the proof you advocate, with areas, suffers from similar problems: the very concept of measure of an angle is far from rigorous and so is the concept of area. But, at beginner's level, it may be used for conveying ideas how limits can be computed. With a simple comparison of areas, we deduce that, for $\theta>0$,
$$
\cos\theta\le\frac{\sin\theta}{\theta}\le\frac{1}{\cos\theta} \tag{*}
$$
and also that $\sin\theta\le\theta$. This latter inequality immediately provides continuity of the sine and hence of the cosine (by a translation), so (*) gives our limit by squeezing. Later on, everything can be made fully rigorous by defining the circular functions by their Taylor series.
If one wants to appeal to intuition, the “getting closer and closer” can be better derived from the isochronism of a pendulum (for small amplitudes), with physical experiments. Definitely not, in my opinion, just from looking at a picture.