Not all subsets of $S$ are ideals. For example $\{\{1\},\{2\}\}$ is not an ideal since is not downward closed. On the other hand, there ideals different from the power set of $S$ as $\{\emptyset, \{1\}\}$.
Let us list all the ideals by the cardinality $n$ of its biggest element.
(1) If $n=0$ then the ideal is $\{\emptyset\}$
(2) If $n=1$ then we have $\{\emptyset, \{a\}\},\ \{\emptyset, \{a\}, \{b\}\},\ \{\emptyset, \{a\},\{b\},\{c\}\}$ and $\{\emptyset, \{a\},\{b\},\{c\},\{d\}\}$, where $a,b,c,d\in\{1,2,3,4\}$ (3) If $n=2$ then we get $\{\emptyset, \{a,b\},\{a\},\{b\}\}$ where $a\in\{1,3\},\ b\in\{2,4\}$ and $\{\emptyset, \{1,2\}, \{2,3\}, \{1\}, \{2\},\{3\},\{4\}\}$. It should be clear how to proceed from there.
Those five elements that make a lattice isomorphic to $N_5$ are not a sub-lattice of the original lattice.
For that to happen, both meets and joins in the subset would have to agree with those in the original lattice.
As you pointed out, in your lattice joins are given by union, so for example
$$\{1/11\} \vee \{1/5,1/7\} = \{1/5,1/7,1/11\} \neq [0,1].$$
So the join of those two elements doesn't even belong to the set whence the set is not a sub-lattice (the same thing that happens in every algebra; for example, groups).
In general, every lattice in which the operations are given by intersection and union is distributive, since these operations distribute over each other on sets.
Best Answer
My original answer used an infinite example, which per bof's comment above was totally unnecessary.
In fact my claim mentioned in the OP that distributivity is sufficient if we restrict attention to two-element $A$s was blatantly false. Working in the lattice $L$ of subsets of $\{1,2,3\}$, take $A=\{\{1,2\},\{3\}\}$ and $x=\{1,3\}$. Now $L$ is about as nice as it is possible for a lattice to be - e.g. it's a Boolean algebra, so a fortiori distributive.
In fact, abstracting from this we have the following:
What if we modify things further, and simply ask that $x$ be below some finite join of elements of $A$?
Here we obviously need an infinite example, and $\mathcal{P}(\mathbb{N})$ provides one: take $A$ to be the set of finite sets and $x$ to be the set of even numbers.