Here is a different approach that uses the integral definition of the arcsine function. We will deduce the limit of interest, $\lim_{h\to 0}\frac{\sin(h)}{h}=1$, without appeal to geometry or differential calculus. (Note that $\cos(h)-1=-2\sin^2(h/2)$)
Instead, we only rely on elementary analysis of continuous functions and their inverses along with simple properties of the Riemann integral. To that end, we now proceed.
We define the sine function, $\sin(x)$, as the inverse function of the function $f(x)$ given by
$$\bbox[5px,border:2px solid #C0A000]{f(x)=\int_0^x \frac{1}{\sqrt{1-t^2}}\,dt }\tag 1$$
for $|x|< 1$.
NOTE: It can be shown that the sine function defined as the inverse of $f(x)$ given in $(1)$ has all of the familiar properties that characterize the circular function $\sin(x)$.
It is straightforward to show that since $\frac{1}{\sqrt{1-t^2}}$ is positive and continuous for $t\in (-1,1)$, $f(x)$ is continuous and strictly increasing for $x\in (-1,1)$ with $\displaystyle\lim_{x\to 0}f(x)=f(0)=0$.
Therefore, since $f$ is continuous and strictly increasing, its inverse function, $\sin(x)$, exists and is also continuous and strictly increasing with $\displaystyle \lim_{x\to 0}\sin(x)=\sin(0)=0$.
From $(1)$, we have the bounds (SEE HERE)
$$\bbox[5px,border:2px solid #C0A000]{1 \le \frac{f(x)}x\le \frac{1}{\sqrt{1-x^2}}} \tag 2$$
for $x\in (-1,1)$, whence applying the squeeze theorem to $(2)$ yields
$$\lim_{x\to 0}\frac{f(x)}{x}=1 \tag 3$$
Finally, let $y=f(x)$ so that $x=\sin(y)$. As $x\to 0$, $y\to 0$ and we can write $(3)$ as
$$\lim_{y\to 0}\frac{y}{\sin(y)}=1$$
from which we have
$$\bbox[5px,border:2px solid #C0A000]{\lim_{y\to 0}\frac{\sin(y)}{y}=1}$$
as was to be shown!
NOTE:
We can deduce the following set of useful inequalities from $(2)$. We let $x=\sin(\theta)$ and restrict $x$ so that $x\in [0,1)$. In addition, we define new functions, $\cos(\theta)=\sqrt{1-\sin^2(\theta)}$ and $\tan(\theta)=\sin(\theta)/\cos(\theta)$.
Then, we have from $(2)$
$$\bbox[5px,border:2px solid #C0A000]{y\cos(y)\le \sin(y)\le y\le \tan(y)} $$
which are the familiar inequalities often introduced in an introductory geometry or trigonometry course.
Best Answer
$$\lim_{h\to 0}\frac{\sin\sqrt{x+h}-\sin\sqrt x}{h}=\lim_{h\to 0}\frac{\sin\sqrt{x+h}-\sin\sqrt x}{\sqrt{x+h}-\sqrt x}\cdot \frac{\sqrt{x+h}-\sqrt x}{h}$$ $$\underset{u=\sqrt{x+h}}{=}\underbrace{\lim_{u\to \sqrt x}\frac{\sin(u)-\sin(\sqrt x)}{u-\sqrt x}}_{=\cos(\sqrt x)}\cdot \underbrace{\lim_{h\to 0}\frac{\sqrt{x+h}-\sqrt x}{h}}_{=\frac{1}{2\sqrt x}}=\frac{\cos(\sqrt x)}{2\sqrt x}.$$