Although this question is labeled precalculus, there is a calculus approach to show that this is decreasing.
Let's begin by considering the function
$$
f(x)=\left(\frac{x+1}{x}\right)^{x+1}.
$$
If we can show that this function is decreasing, then we've shown that the original sequence is decreasing. Since the natural logarithm is an increasing function, we know that $f(x)$ is decreasing if and only if $\ln(f(x))$ is a decreasing function. So, we consider
$$
g(x)=\ln(f(x))=(x+1)\ln\left(\frac{x+1}{x}\right).
$$
Now, we take the derivative of $g$ to get
$$
g'(x)=\ln\left(1+\frac{1}{x}\right)-\frac{1}{x}.
$$
Now, it is enough to show that $g'(x)<0$ for all $x$. Consider the function $h(y)=\ln(1+y)-y$. If we can show that this function is negative for $y>0$, then, since $g'(x)=h\left(\frac{1}{x}\right)$, the result has been shown. Observe that $h(0)=0$ and consider
$$
h'(y)=\frac{1}{1+y}-1=\frac{-y}{1+y}.
$$
For $y>0$, the derivative $h'(y)<0$, so $h(y)$ is decreasing, i.e., $h(y)<h(0)=0$. Therefore, we know that $g'(x)<0$ and so $f(x)$ is decreasing.