Substituting $\sqrt{q}$ for $q$, we get
$$
\prod_{n=1}^{\infty}(1+q^n)=\sum_{k=0}^{\infty}{\frac{q^{\binom{k+1}{2}}}{\prod_{i=1}^{k}{(1-q^i)}}}.
$$
The left-hand side is the generating function for partitions with distinct parts (a part of each size $n$ occurs $0$ or $1$ times).
On the other hand, if a partition with distinct parts has $k$ parts, then the $i$th smallest part is of size at least $i$. Given a partition $0<\lambda_1<\lambda_2<\dots<\lambda_k$, subtract $i$ from the size of the $i$th smallest part to get a partition with parts $0\le\lambda_1-1\le\lambda_2-2\le\dots\le\lambda_k-k$ with $\le k$ parts (after exluding the $0$s), whose conjugate is a partition with the largest part $\le k$. The "staircase" we subtracted has $1+2+\dots+k=\binom{k+1}{2}$ cells. That yields the summand on the right-hand side:
$$
q^{\binom{k+1}{2}}\prod_{i=1}^{k}{\frac{1}{1-q^i}}.
$$
I think this is about as simple as it gets. The Durfee square need not be involved, as you can see.