So I tried to derive the product rule without adding $f(x)g(x+\Delta x)-f(x)g(x+\Delta x)$ as we used to. Instead I started deriving it directly and ran into a strange conclusion that $(uv)'=u'v$. The derivation looks like this:
\begin{align} (uv)' & = \lim_{\Delta x\to0} \frac{u(x+\Delta x)v(x+\Delta x)-u(x)v(x)}{\Delta x} \\ & = \lim_{\Delta x\to0} \frac{u(x+\Delta x)v(x+\Delta x)}{\Delta x}-\lim_{\Delta x\to0} \frac{u(x)v(x)}{\Delta x} \\ & = \lim_{\Delta x\to0} \frac{u(x+\Delta x)}{\Delta x}\lim_{\Delta x\to0} v(x+\Delta x)-\lim_{\Delta x\to0} \frac{u(x)}{\Delta x}\lim_{\Delta x\to0} v(x) \\ & = \lim_{\Delta x\to0} \frac{u(x+\Delta x)}{\Delta x}v(x)-\lim_{\Delta x\to0} \frac{u(x)}{\Delta x}v(x) \\ & = v(x)(\lim_{\Delta x\to0} \frac{u(x+\Delta x)}{\Delta x}-\lim_{\Delta x\to0} \frac{u(x)}{\Delta x}) \\ & = v(x)\lim_{\Delta x\to0} \frac{u(x+\Delta x)-u(x)}{\Delta x} \\ & = u'v \end{align}
Apparently there is a mistake somewhere, but I can't figure out where exactly. Any ideas?
With regard to where you went wrong in your original posting, it is in the second line. You have writen a limit of the form $\infty -\infty$ which is indeterminate. Remember, $x$ is fixed, so $u(x), v(x)$ are also fixed, therefore, the factor $\frac{u(x+\Delta x)}{\Delta x}$ of the first term in line 4 and $\frac{u(x)}{\Delta x}$ of the second term of line 4 have infinite limits as $\Delta x \rightarrow 0$. But really, you already had this error present from line 2.
I want to mention another way to 'arrive' at the product rule using logarithms. It is important to recognize that this is not a proof, except when the functions $u,v$ are strictly positive. However, it is a convenient symbolic way to recall the product rule (a useful mnemonic). If $y=uv$ then
\begin{align} \log{y}&=\log{uv}&\\ &=\log{u} +\log{v}\end{align}
Hence,
$\frac{y'}{y}=\frac{u'}{u}+\frac{v'}{v}$
Now, multiply by $y$ and you get $y'=u'v+v'u$. Again, this is not a proof of the general product rule, but other posters have already given satisfactory explanations using the difference quotient definition.
I personally like this method because it also works to produce a formula for the derivative of a product of an arbitrary finite number of functions (provided that all of these functions are strictly positive!).
If $y=\prod_{j=1}^n f_j$ then
\begin{align} \log{y}&=\log{\prod_{j=1}^n f_j}&\\ &= \sum_{j=1}^n \log{f_j}\end{align}
therefore,
\begin{align} \frac{y'}{y}= \sum_{j=1}^n \frac{f_j'}{f_j} \end{align}
hence
\begin{align} y'&=\sum_{j=1}^n \frac{yf_j'}{f_j}\\ &= \sum_{j=1}^n \left(f_j'(x)\prod_{\stackrel{1\leq i\leq n}{i\neq j}}f_j(x)\right) \end{align}