As others have mentioned above, there have been novels without chapter breaks. I really use chapters to organize my writing as much as to give the reader a pace, particularly since my individual chapters are, I think, a bit on the lengthly side. I'll use Chapter breaks to separate milestones or the 'mini-story events' in my story, and especially for sizable leaps forward in the timeline.
I don't really think that not having chapter breaks would be that bad for me, personally; I tend to finish reading whenever, and just stick in a bookmark. The only possible risk might be that the narrative would basically be a constant stream, without a page break that most new chapters use.
For me, the page break a lot of the books I've read in transitioning to a new chapter almost says 'okay, let's take a few seconds to reflect on what's happened in the last chapter, proceed when you're ready.' But I could still read a novel without chapters. ^_^