I expanded that polynomial out. Ignoring the bit about Pascal's triangle, it's straightforward to see that the polynomial expands to:
[tex]s_n = n^{-n} (1 + (n-1)n + ... + (n-1)n^{n-1} + n^n)[/tex]
If you don't believe it, try it for a few small values of [itex]n[/itex] to see it. Now, if you do accept that, then what I said afterwards follows. That is, to a first approximation, we can drop everything but the last two terms in the polynomial, which gives [itex]e = 2[/itex] after we take the limit. If we keep instead the first three terms, we have
[tex]s_n \approx n^{-n} \left(\frac{1}{2}(n^2 -3n +2)n^{n-2} + (n-1)n^{n-1} + n^n\right)[/tex]
Trying the same strategy, in that first term there is only one term with order [itex]n^n[/itex], so
[tex]s_n \approx n^{-n} (\frac{1}{2} n^n + n^n + n^n) = 2.5.[/tex]
So the idea is that the more terms you keep, the closer you get to the actual value of [itex]e[/itex]. I think this leads to the Taylor expansion for the exponential function directly, but I haven't worked it out.
By the way -- the "argument" using the natural logarithm is not much of an argument, because you're assuming the nature of [itex]e[/itex] to prove the nature of [itex]e[/itex]. It is circular to use the natural logarithm if you're trying to prove the formula for the base of that logarithm.