Does this $(x+y)^2\ge 4xy$ hold for all real $x$ and $y$ - not only for non-negative?
I'm pretty much sure it is:
Suppose above is not true, that is $(x+y)^2< 4xy$
Then we come to a contradiction $(x-y)^2< 0$, which means that our assumption is false => the opposite is true.
Your reasoning is right.
I think it's better the following.
Note $$(x+y)^2-4xy=(x-y)^2\geq0$$ What do you think?