There are a handful of longish proofs for Cayley-Hamilton, but I haven't seen one that goes along the following lines. What's wrong in my thinking.
Take a real square matrix $A$, with Jordan decomposition $D=Q^{-1}AQ$. Call the eigenvalues of $A$ (and $D$) $\lambda_1,\lambda_2,\dotsc,\lambda_k$, with respective algebraic multiplicities $n_1,n_2,\dotsc,n_k$. Then $A$ has the characteristic polynomial: $$\Delta(\lambda):=\det(\lambda I-A)=\prod_i(\lambda-\lambda_i)^{n_i}.$$ So, $$\Delta(A)= \prod_i(A-\lambda_i)^{n_i}=Q\left(\prod_i(D-\lambda_i)^{n_i}\right)Q^{-1}.$$
The block(s) associated with $\lambda_i$ for the matrix $(D-\lambda_i)^{n_i}$ are nilpotent (for at least $n_i$ if not smaller) so $\prod_i(D-\lambda_i)^{n_i}=\mathbf{0}$ so $\Delta(A)=\mathbf{0}$.
A thought. Is the proof not presented this way because the most general form of CH is for "a square matrix over a commutative ring" [according to wikipedia] and this proof requires that its over the field of complex numbers?
– user1816847 Oct 13 '14 at 02:39