Here is an example. Lets say two SNPs are co-inherited 100% of the times, D' prime will always be 1, while r2 incorporates the information about allele frequencies and thus will be lower than 1 if allele frequencies deviate from 0.5 (for example, in case of a perfect disequilibrium, if major allele frequency is 50%, and minor allele frequency 1%, r2 will drop to 0.01).
Doesn't this mean that r2 is useful only when searching for SNPs in LD, or a proxy SNP, to prevent us from choosing a SNP that is uncommon in the population (possibly a rare variant)?