I am interested in why this proof is wrong since every proof I have seen uses much more knowledge than this and I can't figure out why it is incorrect.
Suppose $x^3 = x$ for every $x \in R$. Then $x = x^{-1}$ and similarly for every $y \in R$, $y = y^{-1}$. So then $xy \in R$ and $xy = x^{-1}y^{-1}$. Since $yx(x^{-1}y^{-1}$) = $e$, $(yx)^{-1} = (x^{-1}y^{-1})$. Then $xy = (yx)^{-1}$. Since $R$ is closed under multiplication, $yx \in R$ and so by the discussion above, $yx = (yx)^{-1}$. Therefore, $xy = yx$ for all $x$,$y \in R$ which means that $R$ is commutative.