Well done Paul Jefferys, you got close to a complete solution here.
We have to consider two different values of these climbing powers
depending on the order of operations which can be shown by putting
in brackets. We can define 2^{3^4} either as (2^3)^4 = 2^{12}
or as 2^{(3^4)} = 2^{81}. In the same way there are two
interpretations of {\sqrt 2}^{{\sqrt 2}^{\sqrt 2}} The first of
these is f(f(\sqrt 2)) where f(x)=x^{\sqrt 2} which gives:
N.B. Both iterations can be done on a calculator or computer: X_1
= \lim x_n is equivalent to iterating f(x) = x^{\sqrt 2} and
X_2 = \lim x_n is equivalent to iterating g(x) = (\sqrt 2)^x.
If you do this experimentally, in each case starting with
x_1=\sqrt 2, you will find that the first iteration appears to
converge to infinity and the second appears to converge to 2. We
claim X_1 = +\infty.
Proof
We have x_1=\sqrt{2} and x_{n+1}=x_n^{\sqrt{2}}; thus
Thus, as x_n-x_{n-1}> 0, we have x_{n+1}/x_n > 1 and
hence x_{n+1}> x_n. This shows that x_n is increasing with
n, and that x_n < 2, and this is enough to see that x_n
converges to some number X_2, where X_2\leq 2. As
x_{n+1}=({\sqrt 2})^{x_n}, if we let n tend to infinity we see
that X_2 is a solution of the equation x=({\sqrt{2}})^x. If we
now plot the graphs of y=x and y=(\sqrt{2})^x, we see that
these two graphs meet at only two points, namely (2,2) and
(4,4). Thus X_2 is either 2 or 4, and so it must be
2.