When playing Progression style, Denethor is always in our hero pool (wielding A Burning Brand as soon as it unlocks in quest five) at least until Elrond shows up near the end of the second cycle. (After that Beravor and Elrond+Vilya tend to get picked first.) Matrosh already noted that stacking Unexpected Courage on Denethor is great (I agree), but something to consider is not to only bury scary cards. Instead, let Henamarth Riversong (activated after you've used all your Denethor actions for the round) cover your early game spying needs while Denethor studies the enemy's long term plans! Have Denethor bury every card that isn't a victory or critical quest card (and leave each buried one face up since it's now a known card unless the deck gets shuffled) until you eventually know every remaining encounter card and can strategically pick which ones come when. Obviously you don't want to do this on quests where the encounter deck can reshuffle itself early or unexpectedly, and you also don't want to do it when you or your team are using something like Mariner's Compass.
Overall, Denethor is top notch when you only have the Core set. Once you get past the first few cycles and unlock more choices, he's still a viable choice depending on your deck build.