The following has occupied me while learning about $a^2+b^2=c^2$, I then forgot about all that and recently (40yrs after) came across that again - and am still unable to understand. But today my next thought was to discuss the matter here and I'm sure we can quickly work it out! :-)
Unfortunately my graphic skills are worse than my math, so I'll have try to describe my idea textwise here, I hope my english skills will be good enough.
Let's assume we have a triangle with the angles $A$,$B$,$C$ ($A$ on top, $C$ being the $90°$ and $B$ being right) and the connecting lines being named with the lowercase name of the opposing angle. Sorry for not using proper terminology, I've been out of geometry for too long :((
The idea is that $c$ equals the distance of $A$ and $B$, and to determine that distance, we can (instead of the using the direct way $c$) also travel along $b$, then $a$ and get to $B$. So the distance is $a+b$.
Obviously we're going too far this way, so let's try to improve the route by "creating stairs". We go down b, but after half the way we turn right and walk hald the distance before turning again. So, this way the distance is ${a\over2}+{b\over2}+{a\over2}+{b\over2}$ or $a+b$.
And here's the point I do not get: following that idea, we can create an infinite number of steps, down to the width of an atom, which would approach the line of minimal length ($=c$) until they become one. But still: computing the length according to that approach, we'd end up with $a+b$ again! So, where is my fault???
The reason why you keep on getting a + b as a result is that the formula that explains your procedure is:
Let n be the number of steps $$ c = {\frac {a*n}{n}}+{\frac {b*n}{n}} $$
With n=2 we have your first example. The bigger n, the smaller the step, but the higher the amount of steps. If it approaches infinite, we have your "infinite number of steps, down to the width of an atom" concept.
It does not matter how big n is, the end result will always be a+b. To explain it conceptually, what you did was take a length, divide it in equal parts and then multiply it back for the number of parts it was divided, but that will always yield the original length as a result.