What is wonky to one person is a cool trick to another. I love the way they show these tips. Basically, adding 4 to 106 has a greater impact (percentagewise) than adding 2.5 to 100. So when comparing 110/102.5 to 106/100, we know that the numerator went up by more than the denominator (proportionally speaking), so 110/102.5 > 106/100. This allows us to avoid long division.
I personally would have said that 110/102.5 = 1 + 7.5/102.5 and that 106/100 = 1 + 6/100. We can see that 7.5/102.5 (about maybe 0.073 or so) is greater than 6/100 (.06).