If you know that 1/2 * base * height = the area, then the second diagonal can be seen as the height of the triangle cut by the first diagonal. Since b = 2 h,
1/2 b h = 1/2 ==> b h = 1 ==> 1/2 b b = 1 ==> b b = 2 ==> b = sqrt(2).
I can't read cuneiform so I don't know if it makes this argument.