To prove that $C^{\ast}(\{1, a \} \mid \{ a=a^\ast, ||a|| \leqslant 1\}) \cong C([-1,1]):$
I was thinking that if I use the map:
$f:1 \to 1, \ \quad \ f:a \to id \ $ then: $$f(\text{Span}(\{a^n \mid n \in \mathbb{N}\})) = \text{Span}(\{z^n: n \in \mathbb{N}\} )$$
Whose completion should be the entire space $C([-1,1]).$
Since the completion of $\text{Span}(\{a^n \mid n \in \mathbb{N}\})$ is precisely $C^{\ast}(\{1, a \} \mid \{ a=a^\ast, ||a|| \leqslant 1\})$, we get an isomorphism: $C^{\ast}(\{1, a \} \mid \{ a=a^\ast, ||a|| \leqslant 1\}) \cong C([-1,1])$
You seem to be ommiting the crucial word, which is "universal". The universal unital C$^*$-algebra generated by a selfadjoint element with norm at most 1 is obtained in the following way:
first one considers the algebra $A_0$ generated $1$ and $a$, i.e. $\{p(a):\ p\in\mathbb C\}$.
then one defines $$\|p(a)\|=\sup\{\|\pi(p(a))\|:\ \pi\},$$ where the supremum is taken over all homomorphisms $\pi:A_0\to B(H_\pi)$ for some Hilbert space $H$, where one requires that $\pi(a)=\pi(a)^*$ and $\|\pi(a)\|\leq1$.
the norm is well-defined because selfadjoint contractions exist, so the set is nonempty. It is also finite, because $\|\pi(p(a))\|\leq\|p\|_1\,$ (where $\|p\|_1$ is the sum of the absolute values of the coefficients).
the universal unital C$^*$-algebra generated by a selfadjoint element is the C$^*$-algebra $A$ obtained as the completion of $A_0$.
by definition, any unital C$^*$-algebra generated by a selfadjoint contraction is a quotient of $A$.
We want to show that $A\simeq C[-1,1]$. As mentioned above, there exists a $*$-homomorphism $\pi:A\to C[-1,1]$, such that $\pi(a)=x$, the identity function. For any $*$-homomorphism we have $\sigma(\pi(a))\subset\sigma(a)$. But in this particular case we have $$ [-1,1]=\sigma(\pi(a))\subset\sigma(a)\subset[-1,1]. $$ So $\sigma(a)=[-1,1]$. More generally, given any $f\in C[-1,1]$, we have $$ f([-1,1])=f(\sigma(\pi(a)))=\sigma(f(\pi(a))=\sigma(\pi(f(a))\subset\sigma(f(a))=f(\sigma(a))\subset f([-1,1]). $$ This shows that $\sigma(f(a))=f([-1,1])$ for all $f\in C[-1,1]$. In particular, $$ \|\pi(f(a))\|=\operatorname{spr}(\pi(f(a))=\operatorname{spr}(f(a))=\|f(a)\|. $$ Thus $\pi$ is an isometry, which in particular means that it is injective. As $\pi(f(a))=f$, we also have that $\pi$ is surjective, and so $A\simeq C[-1,1]$.