Comment by xeonmc
I think it would be clearer with an explicit function of a rectangle's area with respect to its diagonals:
A = x y
x = r cos(θ)
y = r sin(θ)
=> A(r) = r²cos(θ)sin(θ)
A(c) = A(a) + A(b)
= c²cos(θ)sin(θ) = a²cos(θ)sin(θ) + b²cos(θ)sin(θ)
=> c² = a² + b²