I want to show that $\lim_{x \to 2} \frac{1}{x} = \frac{1}{2}$. Is this proof correct?
Let $\epsilon > 0$ be given and choose $\delta = \epsilon$. For $0 < |x-2| < \delta$, we have
$|\frac{1}{x} - \frac{1}{2}| = |\frac{2-x}{2x}|< \frac{|x-2|}{|x|} < |x-2| < \delta = \epsilon$
QED.
No, as explained by others. (Try $\varepsilon = \delta = 1.9$, $x = 0.1$.) You know what the derivative of $\frac{1}{x}$ is around $x = 2$, so you should know the ratio of $\delta$ to $\varepsilon$ in a neighborhood of $x = 2$.