Solution:
The answer is in the affirmative for all n≥2. Induct on n. Leaving aside the trivial case n=2, deal first with particular cases n=5 and n=6.
If n=5, remove first the pair (2,5), notice that 3=∣2−5∣ is already on the board, so 7=2+5 alone is written down. Removal of the pair (3,4) then leaves exactly two numbers on the board, 1 and 7, since ∣3±4∣ are both already there.
If n=6, remove first the pair (1,6), notice that 5=∣1−6∣ is already on the board, so 7=1+6 alone is written down. Next, remove the pair (2,5) and notice that ∣2±5∣ are both already on the board, so no new number is written down. Finally, removal of the pair (3,4) provides a single number to be written down, 1=∣3−4∣, since 7=3+4 is already on the board. At this stage, the process comes to an end: 1 and 7 are the two numbers left.
In the remaining cases, the problem for n is brought down to the corresponding problem for ⌈n/2⌉<n by a finite number of moves. The conclusion then follows by induction.
Let n=4k or 4k−1, where k is a positive integer. Remove the pairs (1,4k−1),(3,4k−3),…,(2k−1,2k+1) in turn. Each time, two odd numbers are removed, and the corresponding c=∣a±b∣ are even numbers in the range 2 through 4k, of which one is always 4k. These even numbers are already on the board at each stage, so no c is to be written down, unless n=4k−1 in which case 4k is written down during the first move. The outcome of this k-move round is the string of even numbers 2 through 4k written down on the board. At this stage, the problem is clearly brought down to the case where the numbers on the board are 1,2,…,2k=⌈n/2⌉, as desired.
Finally, let n=4k+1 or 4k+2, where k≥2. Remove first the pair (4,2k+1) and notice that no new number is to be written down on the board, since 4+(2k+1)=2k+5≤4k+1≤n. Next, remove the pairs (1,4k+1),(3,4k−1),…,(2k−1,2k+3) in turn. As before, at each of these stages, two odd numbers are removed; the corresponding c=∣a±b∣ are even numbers, this time in the range 4 through 4k+2, of which one is always 4k+2; and no new numbers are to be written down on the board, except 4=∣(2k−1)−(2k+3)∣ during the last move, and, possibly, 4k+2=1+(4k+1) during the first move if n=4k+1. Notice that 2 has not yet been involved in the process, to conclude that the outcome of this (k+1)-move round is the string of even numbers 2 through 4k+2 written down on the board. At this stage, the problem is clearly brought down to the case where the numbers on the board are 1,2,…,2k+1=⌈n/2⌉, as desired.