When two points are "close", the angle they form when viewed as vectors from the origin is small, near zero. The cosine of angles near zero is near 1, and the cosine decreases as the angle goes towards 90 and then 180 degrees.
So cosine decreases as distance increases. This is why the cosine of the angle between two vectors itself can't make sense as a distance metric. The 'canonical' way to make a distance metric is 1 - cosine; it's a proper metric.