I don't use it much, but like many other have said when it is used, it is applied to the action not the child.
Interestingly I was talking to one of DDs little friends recently and she said 'X (another friend of hers) was naughty', I kind of tried to explain it in a different way, but when her mum explained what X did (came into her home, took over the toys, screamed if the girl came anywhere near her own toys and eventually bit her really intentionally and really hard) I was happy to say that 'X was being naughty that day'. So I guess another similar twist on the use - for a specific incident and a for specified time.....X was being naughty that day but he is feeling better and is back to being nice today etc.
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