I’m planning on using an MCP1700 to drop the voltage of a lithium polymer battery from 3.7 V to 3 V. The battery will be connected to the regulator via a charging circuit (https://www.sparkfun.com/products/10217). The data sheet for the regulator suggests a 1 µF capacitor on its input and output for stability. How important is this? I’m currently using a regulator without capacitors, and my device powers on and runs just fine.
Does it simply make the regulator less efficient, due to less stability and it having to “chase its tail” more?
What about on the input? Does the charger circuit take care of any needs?
The device it's going into is a Game Boy Advance which already regulates its voltage a bit (it’s used to being powered by AA batteries), so I was considering leaving the capacitors off.