White would have a way easier time developing.
Central Control

The thing about space is it's useless (and even a liability) if your pieces don't fill in behind it and make use of the advanced squares the pawns are securing. So here, white is not organized behind his pawns.
Also, the center mass makes it hard for the pieces to work together in one area (kingside, center, queenside).
That said, black can't even develop so... white has all the time in the world and should win without much trouble.
We all know that central control in Chess is important. Whichever side controls the centre normally gains the initiative.
Classical theory states that control of the centre can be met by placing Pawns on the central squares. But hypermodern theory states the centre can be controlled from the flanks, i.e. with Bishops and Knights.
I now pose my question, the next scenario is unrealistic but highly intriguing. What if one of the sides was able to place all his pawns in the centre? The diagram below shows the kind of starting position I am talking about. What kind of game would we see here? Would white just annihilate black. Or would black be in a better position here?