I want to confirm that the density matrix corresponding to a pure ensemble depends on the basis you choose in the following sense and then extend the idea to completely mixed states:
We have the property $\text{tr}(\rho) = 1$. We also have that $\rho$ is idempotent for a pure ensemble, hence we have that $\rho(\rho-1) = 0$. Since we know that $\rho$ is an Hermitian operator, we know that it's matrix is Hermitian and therefore diagonalizable with regard to some basis. Hence we consider this set of basis elements as $\{ |b_n \rangle \}_n$, we then get the following: $$\rho \bigg( \sum_{b'} |b' \rangle \langle b' | \bigg) (\rho - 1) = 0 \implies \sum_{b'}\bigg[ \rho |b' \rangle\langle b' | (\rho -1) \bigg] \implies \sum_{b'}\bigg[ b'\ |b' \rangle \langle b' | (b' - 1) \bigg] = 0 \implies b' = 0~~~\text{or}~~~b' = 1.$$
Since $tr(\rho) = 1$, it follows that the matrix density operator is given in the form where you have $1$ on the diagonal and $0$ everywhere else (imagine it being infinitly large) $$ \rho = \left[ {\begin{array}{cc} 0&&&&\\ &0&& \\ &&1&& \\ & & & 0& \\ &&&& 0\\ \end{array} } \right] $$ But if you consider a pure ensemble $|\psi \rangle = \sum_{j}c_j|j \rangle$ where your density operator would then be $\rho = | \psi \rangle \langle \psi|$, then the diagonal entries in the basis $\{ |j \rangle \}$ would be $\rho_{jj} = \langle j| \rho| j \rangle = |c_j|^2$, thus not necessarily zero or $1$ on the diagonal.
Hence we would have different density matrices. Is my reasoning correct or am I missing something? How would I generalize the first proof to account for the fact that for a completely mixed state we get a matrix of the form $\frac{I}{N}$ (where $I$ is the identity matrix $N$ is the dimension of the vector state)?