Proof Attempt: Suppose $R$ is a relation on set $A$; $R=R_1 \times R_2 \subset A \times A$. We assert $S = R \cup i_{R_1 \times R_1}$ to be the closure of $R$ such that $i_{R_1 \times R_1}=\{(x,x) \vert x \in R_1\}$. We want to show $S$ is reflexive. Let $(r,r')\in S$. Then either $(r,r')\in R_1 \times R_2$ or $(r,r')\in i_{R_1 \times R_1}$. If $(r,r')\in R_1\times R_1$, then $r\in R_1$ so $(r,r)\in i_{R_1\times R_1}$. If $(r,r')\in i_{R_1\times R_1}$, then $r=r'$. In any case, $(r,r)\in S$ so $S$ is reflexive. Moreover, to show $S$ is the smallest reflexive relation that contains $R$, suppose $T=T_1\times T_2 \supseteq R$ and $T$ is reflexive. Then $(r,r')\in R \Rightarrow (r,r')\in T_1\times T_2 \Rightarrow r\in T_1 \land r'\in T_2$. Since $T$ is reflexive, then $(r,r)\in T_1\times T_2$ which means $r\in T_2$ and that implies $T_1 \subseteq T_2$. Furthermore, we have $R_1\subseteq T_1$ so $R_1 \subseteq T_2$. Thus, $i_{R_1\times R_1}\subseteq T_1\times T_2$. Therefore, $S=R_1\times R_2 \cup i_{R_1 \times R_2}\subseteq T$. Clearly, $R\subseteq S$ so S is the reflexive closure of $R$.
My concern: Is my argument correct? I was reading Velleman's text and he instead had $S=R \cup i_A$, which is what I don't understand why.
There are a few problems here.
First and foremost you seem to using a rather non-standard meaning of the word "reflexive". (Which is a polite way of saying I think you're misunderstanding what it means).
The usual definition is
Your proof looks like you think it is something like
which is wrong. Do you see the difference? This misunderstanding dooms your attempt from the outset.
But there's more: You're assuming that $R$ is an arbitrary relation and then immediately write $R=R_1\times R_2$. Later you're writing $T=T_1\times T_2$ for an arbitrary $T$. But you can't assume that a random relation can be written as a cartesian product!
As a simple example, $R=\{(1,2),(3,4)\}$ cannot be written as $R_1\times R_2$ for any $R_1$ and $R_2$. Namely, $(1,2)\in R_1\times R_2$ can only be true $1\in R_1$. And $(3,4)\in R_1\times R_2$ can only be true if $4\in R_2$. But then certainly $(1,4)\in R_1\times R_2$, but $(1,4)$ is not in my $R$, so this $R$ cannot be $R_1\times R_2$.