This question is inspired by an earlier one about the possibility of using the full ring of differential operators on a flag variety to develop a theory of localization in characteristic $p$. (Here by the full ring of differential operators I mean the same thing as the ring of divided-power differenial operators, which is the terminology used in the cited question.)
My question is:
Do people have experience using the full ring of differential operators successfully in characteristic $p$ (for localization, or other purposes)?
I always found this ring somewhat unpleasant (its sections over affines are not Noetherian, and, if I recall correctly a computation I made a long time ago, the structure sheaf ${\mathcal O}_X$ is not perfect over ${\mathcal D}_X$). Are there ways to get around these technical defects? (Or am I wrong in thinking of them as technical defects, or am I even just wrong about them full stop?)