The proposition says a space is Hausdorff if and only if its diagonal map Δ:X→X×X to product space is closed, which given an alternative definition. Notice that close means its complement Δ∁ is open. The definition of Δ is
Δ={(x,x)∣x∈X}
Not hard to see below argument also applies to all finite X-product spaces.
Proof
(Hausdorff => diagonal map is closed) Hausdorff means every two different points has a pair of disjoint neighborhoods (U∈Nx,V∈Ny), where x∈U and y∈V. Therefore, every pair (x,y) not line on the diagonal has U×V cover them. The union of all these open sets U×V covers Δ∁, so Δ the complement of the union is closed.
(diagonal map is closed => Hausdorff) Since
Δ∁={(x,y)∣x,y∈X(x=y)}
is open, which implies for all x,y the pair (x,y)∈Δ∁. Since N(x,y)=Nx×Ny, this implies the fact that Δ∁∈Nx×Ny.
Also, for all U∈Nx and V∈Ny, it's natural that U×V⊆Δ∁, since the open set U×V at most cover Δ∁.
Consider that reversely again, that means for all (x,x)∈Δ, pair (x,x)∈/U×V (i.e. U×V will not cover any part of diagonal), that implies U∩V=∅ as desired.