How much the Fourier analysis and the theory of Laplace transforms would be different if we assumed Dirac Delta to be a function $\overline{\delta}(x)$ rather than distribution $\delta(x)$, in other words, a function such that at zero it takes some infinitely-large value (say, $\omega/\pi$, equivalent to a divergent integral $\frac1{\pi}\int_0^\infty dx$) and otherwise $0$?
For instance, the following property would not hold: $\delta(a x)=\frac1{|a|}\delta(x)$. Instead, it would be $\overline{\delta}(a x)=\overline{\delta}(x)$.
Thus, $\int_{-\infty}^\infty \overline{\delta}(f(x))dx$ would represent the number of roots of the function $f(x)$.
It seems to me that in this case many things would be more convenient. For instance, we would be able to express powers of $\overline{\delta}(x)$, for any $p>0$:
$\overline{\delta}(x)^p={\begin{cases}\frac p{\pi^p}\int_0^\infty x^{p-1}dx,&{\text{if }}x=0\\ 0,&{\text{if }}x\ne 0.\end{cases}}$
For $p=1$ this coincides with the standard Fourier transform. (Notice though that we used trivial definition of multiplication of divergent integrals here, that is $(f(0)+\int_0^\infty f'(x)dx)(g(0)+\int_0^\infty g'(x)dx)=f(0)g(0)+\int_0^\infty (f(x)g(x))'dx$, that is, product of germs at infinity is the germ of the product at infinity, there can be a different, umbral definition).
On the other hand, $\overline{\delta}(x)$ would not be differentiable as a function.
Due to this aproach, we would be able to make continuous all functions with poles of even order or of the form $f(x)=1/|x|^n$. For instance, if we extend the function $f(x)=\frac1 {x^2}$ with $f(0)=\frac{\pi^2\overline{\delta}(0)^2}2$, the function becomes continuous. We even can make continuous the function $f(x)=\ln|x|$ by adding the value $f(0)=-\ln \overline{\delta}(0)-\ln \pi-\gamma$.
I consider a function to be continuous if the germs at right, at left and the value of the function at the point all coincide, in other words, if $f(a)+\int_a^x f'(t)dt=f(b)-\int_x^b f'(x)dx=f(x)$.
Like in the theory of hyperfunctions, we can differentiate discontinuous functions, for instance, for odd $p>0$,
$(\frac1{x^p})'={\begin{cases}\int_0^\infty \frac{p+1}{x^{p+2}} dx,&{\text{if }}x=0\\ -p/{x^{p+1}},&{\text{if }}x\ne 0\end{cases}}={\begin{cases}\frac1{p!}\int_0^\infty x^p dx,&{\text{if }}x=0\\ -p/{x^{p+1}},&{\text{if }}x\ne 0\end{cases}}={\begin{cases}\frac{\pi^{p+1}\overline{\delta}(0)^{p+1}}{(p+1)!},&{\text{if }}x=0\\ -p/{x^{p+1}},&{\text{if }}x\ne 0.\end{cases}}$
So, by sacrificing differentiability of Dirac Delta, it seems we can gain the ability to rise it to any positive power, find germs of functions at poles and make discontinuous functions continuous as well as differentiate them.
There are other interesting consequences in considering Dirac Delta a function, for instance, we would be able to generalize the $\operatorname{sign}$ function to dual numbers in such a way so it to preserve the property $\operatorname{sign} (u v)=\operatorname{sign} u\cdot \operatorname{sign} v$ still holds (in the linked question the formula 1 follows from delta distribution, formula 2 comes if Dirac Delta is a function).
We also would be able to write down expressions for $\ln \varepsilon$ and $\varepsilon^\varepsilon$ in duals.
But the main question is: how far can we develop the Laplace and Fourier transforms in such a world?
P.S.
A follow-up question, can we formally define this modified delta via usual delta as a functional $\overline{\delta}(f(x))=\delta(f(x))|f'(x)|$, because the later expression also represents the number of roots of the function $f(x)$? If so, the two deltas would be equal if their argument is the integration variable, and the difference will appear only when the argument is some function of integration variable.