I'd love to know though, what it's "js set up" mean? 
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is there any (probably historical?) reason why Webpack bundles everything in dev mode?
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Everything?
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The whole dependency graph/modules (entry.js -> bundle.js), instead of compiling individual files in development.
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What's the benefit to this?
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Can immediately think of faster incremental compilation (compile changes, don't bundle) and simpler HMR (load changed files in parallel).
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Replying to @roman01la @TheLarkInn and
Not saying Webpack should do it, but it seems to be a common practice to have compilation and bundling separate.
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I just use broccoli for compilation and webpack for bundling. Works great as I've been saying
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Lol Yehuda so are you saying you don't use any webpack loaders then?
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Correct.
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Just making sure i understand what you were saying.
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