In the same line, it's great at shining a light on the substitution rule for integration.
Given that your point that it can be obscure at first remains valid, I'd walk the middle line of introducing students to the f'(x) notation first; and after the introduction to integrals introduce this notation to them.
A good self-check is to see if you can convert from Leibniz notation to a more rigorous one at any given step in the computation and understand that step rigorously. Personally, I find that functional notation (using D as an operator on the space of functions, etc.) to be as simple to use and much more likely to alert me when I'm about to confuse myself.
Isn't Δ(x^2) = 2xΔx ≠ (Δx)^2 ? The object Δ(x^2) has one infinitesimals while (Δx)^2 has two, and the number of infinitesimals is conserved. (You can only get finite quantities by taking the ratio of equal numbers of infinitesimals.)
If you mean the infinitesimal difference, then Δ(x^2) = 2Δx still isn't (Δx)^2.
But I see how it can be confusing with printed characters. I guess Leibniz just took ligatures for granted when he came up with his stuff.
The derivative w.r.t. x of f(x) is D_x f in Lagrange notation. It looks a bit like matrix multiplication for a good reason—a matrix is just a representation of a linear operator on a finite dimensional vector space.