Nugatory said:
It's much simpler than that.
If you're going to think of ##\langle{x}'|x\rangle## as a special case of ##\langle{x}'|e^{-iHt/\hbar}|x\rangle##, it's the ##t=0## case, not the ##H=0## case. ##|x\rangle## is the position eigenstate with eigenvalue ##x##, and if that's the state of the particle at time ##t=0## then ##e^{iHt/\hbar}|x\rangle## will be its state at all times ##t\ge{0}##. In general that state will be a superposition of eigenstates, and ##\langle{x}'|e^{-iHt/\hbar}|x\rangle## picks out the amplitude of the ##|x'\rangle## components in that superposition. Not surprising, it is equal to ##\delta(x'-x)## at ##t=0## when the state is ##|x\rangle## with no other position eigenstates contributing.
It must be stressed that you cannot prepare a particle in a state represented by ##|x \rangle##, because it's not a Hilbert-space vector. It belongs to a larger space, namely the dual of the dense subspace of Hilbert space, where the position operator is defined (i.e., the domain of the position operator).
Further, of course
##U(t;x,x')=\langle x|\exp(-\mathrm{i} \hat{H} t) x' \rangle,##
thus is a distribution. It only has a meaning when applied to a true state. As already stated above in this thread, it's the propagator in the position representation, i.e., if you have a system that is at ##t=0## prepared in a true pure quantum state, represented by a normalized Hilbert-space vector ##|\psi_0 \rangle##, then in the position representation you have the wave function
##\psi_0(x)=\langle x|\psi \rangle,##
which is a square-integrable function with norm 1. Then at any later time ##t## the state of the system is represented by the wave function
$$\psi(t,x)=\int_{\mathbb{R}} \mathrm{d} x' U(t;x,x') \psi_0(x)=\langle x|\exp(-\mathrm{i} \hat{H}) \psi_0 \rangle.$$