What you propose is the following proof. In what follows I'll assume $a>1$, I can't be bothered to worry about whether or not the details apply if $a\leq 1$.
Let $\epsilon>0$ and $x_0>0$. We want to find a small enough $\delta$ such that for $|x-x_0|<\delta$, $|\log_a(x)-\log_a(x_0)|<\epsilon$. We have
$$|\log_a(x)-\log_a(x_0)|=|\log_a(\frac x{x_0})|$$
and you suggest that if we can guarantee $\frac x{x_0}<a^\epsilon$, then we're done. First of all, this is completely untrue as stated because that could mean $\frac x{x_0}$ could be close to $0$ in which case that logarithm would be massively negative, not what we want. What we want is for $\frac x{x_0}$ to be close to $1$. A better condition would be $a^{-\epsilon}<\frac x{x_0}<a^\epsilon$. In that case, we would have, by the strictly increasing nature of the $\log$ function:
$$-\epsilon<\log_a(\frac x{x_0})<\epsilon$$
$$|\log_a(\frac x{x_0})|<|\epsilon|$$
As you say, we need to show that we can guarantee $a^{-\epsilon}<\frac x{x_0}<a^\epsilon$ for $|x-x_0|<\delta$ by choosing a small enough $\delta$. Probably the cleanest way to do this is to separate the cases $x>x_0$ and $x<x_0$. For $x>x_0$ you just need $\frac x{x_0}<a^\epsilon$ since the other inequality is trivial, letting $\delta=a^\epsilon-1$ we get immediately $|\frac x{x_0}-1|<\delta$, the case $x<x_0$ is similar. So that part of the proof isn't that mysterious.
The mysterious part is figuring out if this is really a proof. What facts about logarithms and exponentials did we implicitly use here? Can we justify all of them? We used the following:
- $\log_a$ is a real function defined for all $x>0$.
- The formula $\log(x)-\log(y)=\log\frac{x}{y}$.
- $\log$ is strictly increasing.
- $a^x$ is strictly increasing (this is equivalent to (3) under your definitions).
- $a^0=1$.
I was originally going to write an answer about how we would first have to prove that $a^x$ is continuous, but I don't think I've used that assumption anywhere. I suppose the key is in assumption (2), which is such a powerful assumption (it basically uniquely characterizes the logarithm) that it implicitly gives us the continuity of $\log$ automatically. In fact, I think it should be possible to skip any mention of $a^x$ and show $\log$ is continuous just using the assumption $\log(x)+\log(y)=\log(xy)$.