What are the problems solved by Single File Components?

The Single File Components solve the common problems occurred in a javascript driven application with a .vue extension. The list of issues are,

1. Global definitions force unique names for every component
2. String templates lack syntax highlighting and require ugly slashes for multiline HTML
3. No CSS support means that while HTML and JavaScript are modularized into components, CSS is conspicuously left out
4. No build step restricts us to HTML and ES5 JavaScript, rather than preprocessors like Pug (formerly Jade) and Babel.