Well for one, we wouldn't have had any of Angel seasons 1 - 5 and that would've been a huge bummer right?
I love Buffy and Angel together. And I think the end game is Bangel BUT, their time apart was important especially for Angel because he had a calling, became more independent and he ultimately became a better man.
Buffy needed to experience love and a world outside of Angel to know for certain as she did in Season 7 that she would never love anything as much as she loved him. She may have not known that had she not experienced Parker, Riley, and even Spike.
If Angel had stayed human, I think they would have made it work but it would have been an adjustment period for Angel. He would have to learn to fight as a human and but he would never become the Angel we all know and love now because he wouldn't have had his time to fight as a Champion for the powers! Who is a much better fit for Buffy! If Angel gets his Shanshu now and goes and helps Buffy he still has alot to contribute as a human. He still has 250+ years of knowledge in the occult and fighting experience and he would still be a valuable asset to Buffy even if he didn't have Vampiric strength. I think there would be some growing pains especially for him when he is used to saving everyone but he would eventually figure out his role as a human.
Having babies would be hard for them two given their line of work but who knows maybe it could work! We all now that Angel would make a great father, he is very protective and nurturing.