BruDaddy is right, full boils are needed for complete hop utilization. Essentially, you need to add more hops to a 2.5 gallon boil than to a 5 gallon boil to get the same IBUs. You need a full boil for all grain due to the fact that you will need to use that much amount of water to convert all the starches to sugars, then to rinse all the sugars from your mash tun to the kettle. If you end up using less water, you'll not obtain all your fermentable sugars and you'll have a lower OG when you top up the fermenter.