Extract doesn't need to be boiled, it has been boiled sufficiently at the maltster already before it was condensed to LME or DME. Pasteurization will suffice, but may not even be required.“ You can brew extract beers with a fairly small pot. You just top up with water in the fermenter.”
yes you can but not ideally and there are a couple things you need to know. (1) your color is always going to be darker when you do a concentrated wort boil. (2) your hop utilization suffers and you will actually need to use more hops in a concentrated boil to achieve the same bitterness.
That said, many of us started out doing concentrated extract boils. The first time I ever made beer I thought I could make a clone of Molson Golden. That was one of my favorite beers back then. It was redder than Killians and the flavor was awful. But I was happy then just to have made beer.
Therefore, most modern extract brewing instructions (e.g., How to Brew) and various threads here on HBT and elsewhere, will tell you to boil with only half or smaller amount of extract, and add the balance at flameout. That's to reduce caramelization, which reduces wort darkening, while making for a potentially more fermentable wort and fresher tasting beer in the end.
Boiling lower gravity wort also increases hop utilization (bittering reactions), creating the same or higher IBUs at lower hop dosages and/or shorter boil times.