It is also an operator, meaning it can be used with infix notation, as in (x : xs). Haskell has something called operator sections, where if one supplies only one of the arguments to an operator it will return a function expecting the other argument. In other words
(x:) == \xs -> (x:xs)
and (:xs) == \x -> (x:xs)
This can be used as in this article, to create a function that prepends x to any list. Another common example is (1+) which increments any number it is given, or (:[]) which turns any value into a one-element list.It can also be used much more cleverly -- especially considering that any two-argument function can be turned into an operator with backticks -- but then (in my opinion) readability starts to suffer.
The article also features examples of point-free style, another unfortunate trend for readability.
As long as you use operators sparingly, don’t abuse partial application and prefer explicit lambdas to composition, Haskell is fairly readable. The issue is that approximately no Haskeller writes Haskell this way.
(For example, (\x -> x ++ y) and (\y -> x ++ y) look pretty similar to me at first glance, but (++y) and (x++) are immediately distinguishable.)
Of course, this is reliant on knowing the operators but that seems like a mostly orthogonal issue to me: You still need to know the operator in the lambda expression. That said, the niceness of sections gives people yet another reason to introduce operators for their stuff when arguably they already are too prevalent.