I have seen a proof by induction for this theorem (located here: if G is generated by {a,b} and ab=ba, then prove G is Abelian), but I wondered if my version had any validity...or if it is too "informal".
The problem statement is as follows:
Suppose a group $G$ is generated by two elements $a$ and $b$. If $ab=ba$, prove that G is abelian.
Firstly, if $ab=ba$, then you know an element of the form $a^n \circ b^m$ can be "shuffled" into any permutation. For example, if $x=a \circ b \circ b \circ b$, then because of the property of $ab=ba$, we know that $x$ can be rewritten in 3 additional manners:
$x=b \circ a \circ b \circ b$
$x=b \circ b \circ a \circ b$
$x=b \circ b \circ b \circ a$
Therefore, if we also know that $a,b$ generate all elements within $G$, it should be valid to claim that, for an arbitrary element $x$, $x=a^n \circ b^m$...because these elements can be shuffled into all possible composition arrangements.
Moving forward, suppose $x,y \in G$ where $y=a^i \circ b^j$ and $x=a^m\circ b^n$
I must show that $xy=yx$:
Beginning:
$xy=(a^m \circ b^n)\circ (a^i \circ b^j)$
$=a^m \circ (b^n \circ a^i) \circ b^j$
$=a^m \circ (a^i \circ b^n) \circ b^j$
By simple "regrouping" of common $a$ terms and $b$ terms
$=a^i \circ (a^m \circ b^j) \circ b^n$
$=(a^i \circ b^j)\circ(a^m\circ b^n)$
$=yx$
Is this too informal of a proof? (i.e. should I stick with the induction method?)
You have explicitly shown any words of the form $a^m b^n$ can be arbitrarily permuted (although arguing by example is not great). You have explicitly shown that words of the form $a^m b^n a^i b^j$ are equal to $a^i b^j a^m b^n$. Things that are missing:
Some of this can be patched into your argument. But the inductive argument should handle all of this without so much patching.