Your argument is correct: $(r \cos \theta, r \sin \theta) = (0,0)$ holds if and only if $r = 0$ , so approaching the origin in polar coordinates indeed corresponds to letting $r \to 0$ . You can, however, approach the origin from different directions, which is something you need to be careful about when working in polar coordinates! The limit $ \lim_{(x,y) \to (0,0)} f(x,y)$ exists if and only if the limits
$$ \lim_{r \to 0} f(r \cos \vartheta(r), r \sin \vartheta(r))$$
exist and agree for every parametrisation $\vartheta: (0,1) \to [0,2\pi)$ of the polar angle.
In your problem this works out:
$$ \lim_{r\to 0} f(r \cos \vartheta(r), r \sin \vartheta(r)) = \lim_{r\to 0} \, r \cos \vartheta(r) \sin \vartheta(r) = 0$$
holds for every $\vartheta$ since $\cos$ and $\sin$ are bounded by $1$ .
If we consider $g(x,y) = \frac{x}{\sqrt{x^2 + y^2}}$ for $(x,y) \neq (0,0)$ instead, things are quite different. We have
$$ g(r \cos(\theta), r \sin(\theta)) = \cos \theta ,$$
so
$$ \lim_{r \to 0} g(r \cos(0), r \sin(0)) = 1 \neq -1 = \lim_{r \to 0} g(r \cos(\pi), r \sin(\pi)) \, .$$
Therefore the limit $\lim_{(x,y) \to (0,0)} g(x,y)$ does not exist and we cannot choose a value for $g(0,0)$ in order to make $g$ continuous.
A better example of the issue is provided by this question. Consider
$$ h(x,y) = \frac{x^2 y}{x^4 + y^2} = \frac{r \cos^2 \theta \sin \theta}{r^2 \cos^4 \theta + \sin^2 \theta} \, . $$
At first glance one would probably expect the limit $0$ at the origin, given the above representation in polar coordinates. However, along the parabolic path $y = x^2$ the limit is equal to $\frac{1}{2}$, so the limit $\lim_{(x,y) \to (0,0)}h(x,y)$ does not exist.
In polar coordinates this path is parametrised implicitly by
$$\frac{\sin \vartheta(r)}{\cos^2 \vartheta(r)} = r \, $$
or explicitly by
$$ \sin \vartheta(r) = \frac{\sqrt{1+4 r^2}-1}{2r} \, , $$
which is not easy to spot. This illustrates the fact that using polar coordinates is possible, but not always advisable when working on these problems.
\dfracin titles please (and actually, anywhere). – Did Jul 28 '18 at 14:44