TITLE: Applications of Stacks
QUESTION [17 upvotes]: I've been aware of stacks since grad school, and I can usually follow in rough lines a discussion about stacks, but I've often wondered what particular (purely!) scheme-theoretic argument or theorem is significantly simplified by the introduction of stacks. I'm sure there are many, but since I don't deal with stacks on a regular basis I don't encounter them as frequently, and I thought maybe some of you can enlighten me.

REPLY [14 votes]: The classic application is Deligne & Mumford's paper proving the irreducibility of the coarse moduli scheme $\overline{M}_g$ of stable genus g curves over any algebraically closed field.  They proved irreducibility first for the moduli stack $\overline{\mathcal{M}}_g$ of curves, and then inferred from this result the irreducibility of the scheme.

REPLY [10 votes]: The DeRham space is a stack $X_{DR}$ associated to a smooth variety $X$, so that modules on $X_{DR}$ are D-modules on $X$.  This is accomplished by declaring the maps from $Y$ into $X_{DR}$ are the same as maps from $Y^{red}$ (the reduced scheme) into $X$.  This has the effect of identifying points with their infinitesmal neighborhoods.
The DeRham space is often most useful as a conceptual tool. However, a specific application of it was by Ben-Zvi and Nevins, who used it (and other tools) to show that certain cusped versions $\widetilde{X}$ of $X$ had equivalent categories of D-modules.  The idea being, these cusps were identifying some of the infinitesmal neighborhoods of some of the points, and so they should be intermediate between a variety and its DeRham space.