Geometrically there is a very big difference between separable and algebraic closures (in the only case where there is a difference at all, i.e., in positive characteristic $p$). Technically, this comes from the fact that an algebraically closed field $k$ has no non-trivial derivations $D$; for every $f\in k$ there is a $g\in k$ such that $g^p=f$ and then $D(f)=D(g^p)=pg^{p-1}D(g)=0$. This means that an algebraically closed field contains no differential-geometric information. On the other hand, if $K\subseteq L$ is a separable extension, then every derivation of $K$ extends uniquely to a derivation of $L$ so when taking a separable closure of a field a lot of differential-geometric information remains. Hence I tend to think of a point of a variety for a separably closed field as a very thick point (particularly if it is a separable closure of a generic point) while a point over an algebraically closed field is just an ordinary (very thin) point. Of course you lose infinitesimal information by just passing to the <em>perfection</em> of a field (which is most conveniently defined as the direct limit over the system of $p$'th power maps). Sometimes that is however exactly what you want. That idea first appeared (I think) in Serre's theory of pro-algebraic groups where he went one step further and took the perfection of group schemes (for any scheme in positive characteristic the perfection is the, inverse this time, of the system of Frobenius morphisms) or equivalently restricted their representable functors to perfect schemes. This essentially killed off all infinitesimal group schemes and made the theory much closer to the characteristic zero theory (though interesting differences remained mainly in the fact that there are more smooth unipotent group schemes such as the Witt vector schemes). Another, interesting example is for Milne's flat cohomology duality theory which needs to invert Frobenius by passing to perfect schemes in order to have higher $\mathrm{Ext}$-groups vanish (see SLN 868).