I found this exercise in the first tome of Ken Binmore's Foundations of Analysis.
I know that similar questions exist in MSE so I will try to avoid the duplicate. I know also Eugenia Cheng (2004) found this proof unsatisfying.
Nevertheless I have two questions: Why the autor chose to work with $\sqrt{2}$ in the first place in his search of counterexample? I have never seen similar non-constructive reasoning. What other proofs or refutations follow such an approach?


The point of the proof is not in taking $\sqrt 2$ exactly. The point is in taking two irrational numbers that multiply into a rational number, and that there exist irrational numbers that, taken to a rational power, are rational.
In particular, take any irrational $\alpha_1, \beta_1, \beta_2$ with the property that $\alpha_1^{\beta_1\cdot \beta_2} \in\mathbb Q$.
Then the proof can be done in the same way, by separating two cases:
Note, however, that in many ways, $\alpha_1=\beta_1=\beta_2\sqrt 2$ is the simplest possible version of the counterexample. But you could also take:
and the proof would work just as well.