While you can still write your program in a modular way and build it as a single translation unit, you will miss all the mechanisms C provides to enforce that modularity. With multiple translation units you have fine control on your modules' interfaces by using e.g. extern and static keywords.
By merging your code into a single translation unit, you will miss any modularity issues you might have because the compiler won't warn you about them. In a big project this will eventually result in unintended dependencies spreading around. In the end, you will have trouble changing any module without creating global side-effects in other modules.
