Your proof is kind of the wrong way around - you need to prove that the two possibilities given cover all possible cases, so to do it more properly you would do something like this:
Since $a$ and $b$ are distinct, either $a > b$ or $b > a$.
If $a > b$, then $a + b > b + b = 2b$ and so $\frac{a + b}{2} > b$. If $b > a$, then $a + b > a + a = 2b$ and so $\frac{a + b}{2} > a$.
The way you wrote it is fine for your own scratch work, which is a useful step in working towards a proper proof but is generally not great for writing proofs properly, because the proof needs to follow a clear stream of logic.
As for alternatives to a case-by-case proof, one option is to take advantage of a trick of logic - the statement "$A$ or $B$" is equivalent to "not $A$ implies $B$"
because you can break "$A$ or $B$" into two cases - either $A$ is true (in which case $B$ doesn't matter), or $A$ is false and $B$ is true. So if we assume $A$ to be false and prove that it requires $B$ to be true, we've proven the original statement.
In this case, it would look something like this:
Assume $\frac{a + b}{2} \ngtr a$, so $\frac{a + b}{2} \leq a$. Then $a + b \leq 2a$, and so $b \leq a$. But $a$ and $b$ are distinct, so $b < a$. Then $a + b > b + b = 2b$ and hence $\frac{a + b}{2} > b$.
Is that a neater proof than the one by cases? Personally I think the first proof is tidier, but this can be a useful technique for other proofs.