[step:Prove the diameter bound $\left(\frac{n}{n+1}\right)^k \operatorname{diam}(\Delta^n)$ for iterated subdivision]
We first establish the base case $k = 1$: each simplex appearing in $\rho^{\Delta^n}(\iota_n)$ has diameter at most $\frac{n}{n+1} \operatorname{diam}(\Delta^n)$.
[claim:Each simplex in the barycentric subdivision has diameter at most $\frac{n}{n+1}$ times the original]
Let $\tau$ be an $n$-simplex in the barycentric subdivision of $\Delta^n$. The vertices of $\tau$ are barycentres $b_{F_0}, b_{F_1}, \ldots, b_{F_n}$ of a chain of faces $F_0 \subset F_1 \subset \cdots \subset F_n$ of $\Delta^n$, where $\dim(F_i) = i$. The diameter of $\tau$ is
\begin{align*}
\operatorname{diam}(\tau) = \max_{0 \le i < j \le n} |b_{F_j} - b_{F_i}|.
\end{align*}
Since $F_i \subset F_j$ and $b_{F_i} \in F_i \subset F_j$, we have $|b_{F_j} - b_{F_i}| \le \operatorname{diam}(F_j) \le \operatorname{diam}(\Delta^n)$. We sharpen this: the barycentre $b_{F_j}$ of a face $F_j$ with vertices $v_0, \ldots, v_j$ is $b_{F_j} = \frac{1}{j+1}(v_0 + \cdots + v_j)$. For any vertex $v_\ell$ of $F_j$,
\begin{align*}
|b_{F_j} - v_\ell| = \left|\frac{1}{j+1} \sum_{m=0}^{j} (v_m - v_\ell)\right| \le \frac{1}{j+1} \sum_{m \neq \ell} |v_m - v_\ell| \le \frac{j}{j+1} \operatorname{diam}(F_j).
\end{align*}
Since $b_{F_i}$ is a convex combination of vertices of $F_j$ (as $F_i \subset F_j$), and the distance from a barycentre to any point in a simplex is at most the maximum distance from the barycentre to a vertex, we obtain $|b_{F_j} - b_{F_i}| \le \frac{j}{j+1} \operatorname{diam}(F_j) \le \frac{n}{n+1} \operatorname{diam}(\Delta^n)$.
[/claim]
[proof]
We prove the sharper bound that for any two points $p, q$ in a simplex $\sigma$ of dimension $n$, if $q$ is the barycentre of a face $F$ of $\sigma$ containing the point $p$, then $|p - q| \le \frac{n}{n+1} \operatorname{diam}(\sigma)$.
Let $F$ have vertices $w_0, \ldots, w_m$ with $m \le n$, and write $p = \sum_{i=0}^{m} \alpha_i w_i$ with $\alpha_i \ge 0$ and $\sum \alpha_i = 1$. The barycentre is $q = \frac{1}{m+1} \sum_{i=0}^{m} w_i$. Then
\begin{align*}
|p - q| = \left|\sum_{i=0}^{m} \left(\alpha_i - \frac{1}{m+1}\right) w_i\right|.
\end{align*}
Writing $w_i = w_0 + (w_i - w_0)$ and noting that $\sum (\alpha_i - \frac{1}{m+1}) = 0$, we get
\begin{align*}
|p - q| = \left|\sum_{i=1}^{m} \left(\alpha_i - \frac{1}{m+1}\right)(w_i - w_0)\right| \le \sum_{i=1}^{m} \left|\alpha_i - \frac{1}{m+1}\right| \cdot |w_i - w_0|.
\end{align*}
Since $|w_i - w_0| \le \operatorname{diam}(F) \le \operatorname{diam}(\sigma)$ and $\sum_{i=1}^{m} |\alpha_i - \frac{1}{m+1}| \le \frac{m}{m+1} \le \frac{n}{n+1}$ (the maximum of the total variation $\sum |\alpha_i - \frac{1}{m+1}|$ over the simplex is achieved at a vertex, where it equals $\frac{m}{m+1}$), we conclude $|p - q| \le \frac{n}{n+1} \operatorname{diam}(\sigma)$.
In the barycentric subdivision, any simplex $\tau$ has vertices $b_{F_0}, \ldots, b_{F_n}$ with $F_0 \subset \cdots \subset F_n$. Each pair $(b_{F_i}, b_{F_j})$ with $i < j$ satisfies $b_{F_i} \in F_i \subset F_j$ and $b_{F_j}$ is the barycentre of $F_j$, so $|b_{F_i} - b_{F_j}| \le \frac{n}{n+1} \operatorname{diam}(\Delta^n)$ by the bound above.
[/proof]
The general case follows by induction on $k$. After one application of $\rho$, every simplex in $\rho(\iota_n)$ has diameter at most $\frac{n}{n+1} \operatorname{diam}(\Delta^n)$. After $k$ applications, each simplex in $\rho^k(\iota_n)$ is obtained by subdividing a simplex from $\rho^{k-1}(\iota_n)$, and the subdivision ratio $\frac{n}{n+1}$ applies to each step. Therefore the maximum diameter is at most
\begin{align*}
\left(\frac{n}{n+1}\right)^k \operatorname{diam}(\Delta^n).
\end{align*}
Since $\frac{n}{n+1} < 1$, this tends to $0$ as $k \to \infty$, which is the crucial property used in the proof of excision.
[/step]