I call this the combinatorial method because I have seen combinatorialists introducedescribe computations with formal power series in this way, which is purely algebraic and emphasizes the finitely many calculations needed to work out any particular coefficient. It seems like a clunky way of setting up formal power series if you want to prove properties of them beyond the simplest ones, but it has the advantage of being intuitive and getting to the point of things in a direct way. To prove things from this point of view you typically need to work them out degree-by-degree with induction. See, for example, how proofs look in the Amer. Math. Monthly article on formal power series by Ivan Niven here.
Remark 1. Armed with the $x$-adic topology, we gain access to Hensel's lemma and topological arguments that can replace tedious degree-by-degree arguments in the combinatorial method. For(It is not lost on me that the proof of Hensel's lemma itself is based on a degree-by-degree argument, so my point of comparison between Methods 1 and 2 is that Method 1 uses degree-by-degree arguments very often, while Method 2 can often avoid them with simple continuity arguments.) For example, the formal derivative on $A[[x]]$ is $x$-adically uniformly continuous (since
$|f'|_x \leq (1/2)|f|_x$), so to prove that the usual rules of formal derivatives are valid on $A[[x]]$, by its continuity and the denseness of $A[[x]]$ we are reduced to verifying them onthe rules on polynomials, which iswhere the rules are "already known". There is no need to actually prove the identities usingon actual power series, but you may need to be more careful in the case of proving the chain rule to reduce to the polynomial case.