Let $f$ be defined for all real $x$, and suppose $|f(x) - f(y)| \leq (x-y)^2$ for all real $x$ and $y$. Prove $f$ is constant. (From Rudin PMA)
Note: Many proofs are available; this question is to verify and critique this proof.
Proof: For any $x$, choose $y < x$. Then
$$\begin{align*} f(x) - f(y) &\leq (x-y)^2 \\ \frac {f(x) - f(y)}{x - y} &\leq x-y \\ f'(x) = \lim_{y \to x}\frac {f(x) - f(y)}{x - y} &\leq \lim_{y \to x} x-y = 0. \end{align*}$$
Thus, $f'(x) = 0$ for all $x$, and $f$ is constant.
Is the proof correct? Can it or the exposition be improved?
Update: Thank you for the invaluable critique. A revised proof is below. Please verify, critique, and suggest improvements.
Revised Proof: For $x \neq y$, $$\begin{align*} \left \lvert f(x) - f(y) \right \rvert &\leq (x-y)^2 \\ -|x-y| \leq \left \lvert \frac {f(x) - f(y)}{x-y} \right \rvert &\leq |x-y| \\ \end{align*}$$
and so by the Squeeze Theorem $$\lim_{y \to x} \frac {f(x) - f(y)}{x-y} = 0.$$
Since $f'(x) = 0$ for all $x$, by the Mean Value Theorem $f$ is constant.