[guided]The determinant $D(x,y)$ has two different useful descriptions. The first description came from expanding each entry as a geometric series. The second description comes from treating the determinant as a rational function and clearing denominators.
Define
\begin{align*}
P(x,y)
:=
\prod_{i=1}^n\prod_{j=1}^n (1-x_i y_j).
\end{align*}
Then $P(x,y)D(x,y)$ is a polynomial. If we interchange two $x$-variables, say $x_i$ and $x_j$, then two rows of the determinant are interchanged, so the determinant changes sign. The factor $P(x,y)$ is symmetric in the $x$-variables, so $P(x,y)D(x,y)$ is alternating in $x_1,\dots,x_n$. The same argument with columns shows that it is alternating in $y_1,\dots,y_n$.
Every alternating polynomial in $x_1,\dots,x_n$ is divisible by the Vandermonde alternant
\begin{align*}
a_\delta(x_1,\dots,x_n)
=
\prod_{1\leq i<j\leq n}(x_i-x_j),
\end{align*}
because setting $x_i=x_j$ forces the polynomial to vanish. Applying the same argument in the $y$-variables shows that
\begin{align*}
P(x,y)D(x,y)
\end{align*}
is divisible by
\begin{align*}
a_\delta(x_1,\dots,x_n)a_\delta(y_1,\dots,y_n).
\end{align*}
By the [Vandermonde divisibility property for alternating polynomials](/page/Alternating%20Polynomial), write
\begin{align*}
P(x,y)D(x,y)
=
a_\delta(x_1,\dots,x_n)a_\delta(y_1,\dots,y_n)Q(x,y)
\end{align*}
for the polynomial quotient $Q$. The quotient is symmetric in $x_1,\dots,x_n$ because both $P(x,y)D(x,y)$ and $a_\delta(x_1,\dots,x_n)$ change sign under every transposition of two $x$-variables, and the same argument gives symmetry in $y_1,\dots,y_n$. We must show that $Q$ has no remaining dependence on either set of variables. Fix $i \in \{1,\dots,n\}$. In each summand of the cleared determinant, the variable $x_i$ occurs in exactly the product of the $n-1$ factors $1-x_i y_j$ with one value of $j$ omitted. Hence $P(x,y)D(x,y)$ has degree at most $n-1$ in each individual variable $x_i$.
Now $Q$ is symmetric in $x_1,\dots,x_n$, because both $P(x,y)D(x,y)$ and $a_\delta(x_1,\dots,x_n)$ are alternating in those variables. To avoid any possible cancellation issue, use lexicographic monomial order in the $x$-variables with $x_1>x_2>\cdots>x_n$, treating coefficients as elements of $\mathbb{Z}[y_1,\dots,y_n]$. The leading monomial of $a_\delta(x_1,\dots,x_n)$ is
\begin{align*}
x_1^{n-1}x_2^{n-2}\cdots x_n^0
\end{align*}
with coefficient $1$.
Suppose $Q$ had a nonconstant term involving the $x$-variables. Since $Q$ is symmetric, the leading $x$-monomial of $Q$ has the form $x_1^{\alpha_1}\cdots x_n^{\alpha_n}$ with $\alpha_1>0$. In a polynomial ring over an integral domain, the leading monomial of a product is the product of the leading monomials. Therefore the leading monomial of $a_\delta(x_1,\dots,x_n)Q(x,y)$ would have $x_1$-degree $\alpha_1+n-1>n-1$. This contradicts the fact that $P(x,y)D(x,y)$ has degree at most $n-1$ in $x_1$. Hence $Q$ is independent of the $x$-variables.
Applying the corresponding lexicographic leading-monomial argument in the $y$-variables shows that $Q$ is independent of $y_1,\dots,y_n$. Therefore $Q$ is a constant.
It remains to identify this constant. Compare the monomial
\begin{align*}
M:=x_1^{n-1}x_2^{n-2}\cdots x_n^0
y_1^{n-1}y_2^{n-2}\cdots y_n^0.
\end{align*}
The coefficient of $M$ in
\begin{align*}
a_\delta(x_1,\dots,x_n)a_\delta(y_1,\dots,y_n)
\end{align*}
is $1$. For $P(x,y)D(x,y)$, expanding the determinant after clearing denominators gives
\begin{align*}
P(x,y)D(x,y)
=
\sum_{\sigma \in S_n}\operatorname{sgn}(\sigma)
\prod_{i=1}^n\prod_{j\neq \sigma(i)}(1-x_i y_j).
\end{align*}
To obtain $M$, the selected factors $x_i y_j$ must have row sums $n-i$ and column sums $n-j$. These row and column sums force the triangular selection $j\leq n-i$. This selection avoids exactly the omitted positions only for the reverse permutation $\sigma(i)=n+1-i$. Its sign contribution is
\begin{align*}
\operatorname{sgn}(\sigma)(-1)^{n(n-1)/2}
=
(-1)^{n(n-1)/2}(-1)^{n(n-1)/2}
=
1.
\end{align*}
Thus the coefficient of $M$ in $P(x,y)D(x,y)$ is $1$, and the constant is $1$, giving
\begin{align*}
D(x,y)
=
\frac{
a_\delta(x_1,\dots,x_n)a_\delta(y_1,\dots,y_n)
}{
\prod_{i=1}^n\prod_{j=1}^n (1-x_i y_j)
}.
\end{align*}[/guided]