It's not a simplification, it's wrong. Sqrt(square(x)) equals abs(x).
It also equals x with appropriate assumptions (x > 0).
Well, then sin(x) = x if x is infinitely small
so there's an unconditionally correct answer (it's also equal to abs(x) for x>0), and then there is an answer that is only correct for half the domain, which requires an additional assumption.