In the context of Linux, the boot loader is responsible for some predefined tasks. As this question is arm tagged, I think that ARM booting might be a useful resource. Specifically, the boot loader was/is responsible for setting up an ATAG list that describing the amount of RAM, a kernel command line, and other parameters. One of the most important parameters is the machine type. With device trees, an entire description of the board is passed. This makes a stock ARM Linux impossible to boot with out some code to setup the parameters as described.
The parameters allows one generic Linux to support multiple devices. For instance, an ARM Debian kernel can support hundreds of different board types. Uboot or other boot loader can dynamically determine this information or it can be hard coded for the board.
You might also like to look at bootloader info page here at stack overflow.
A basic system might be able to setup ATAGS and copy NOR flash to SRAM. However, it is usually a little more complex than this. Linux needs RAM setup, so you may have to initialize an SDRAM controller. If you use NAND flash, you have to handle bad blocks and the copy may be a little more complex than memcpy().
Linux often has some latent driver bugs where a driver will assume that a clock is initialized. For instance if Uboot always initializes an Ethernet clock for a particular machine, the Linux Ethernet driver may have neglected to setup this clock. This can be especially true with clock trees.
Some systems require boot image formats that are not supported by Linux; for example a special header which can initialize hardware immediately; like configuring the devices to read initial code from. Additionally, often there is hardware that should be configured immediately; a boot loader can do this quickly whereas the normal structure of Linux may delay this significantly resulting in I/O conflicts, etc.
From a pragmatic perspective, it is simpler to use a boot loader. However, there is nothing to prevent you from altering Linux’s source to boot directly from it; although it maybe like pasting the boot loader code directly to the start of Linux.
See Also: Coreboot, Uboot, and Wikipedia’s comparison. Barebox is a lesser known, but well structured and modern boot loader for the ARM. RedBoot is also used in some ARM systems; RedBoot partitions are supported in the kernel tree.