@Panthera - i think this is perhaps a matter of personal taste, but personally I think paragraphs are essential. If you post one long chunk without breaking it up with new lines for speech, new paras for alterations in story and so on you make the reader do it which means they have to work a lot harder to understand the piece of work.
Entirely up to you of course, but if you look at all the more "read" works on here you'll probably find that they use that sort of style rather than the other. If you need a hand with that sort of thing, Mera2876 and Abi_Kirk have both posted very useful writing guides that I use a lot. Cheers, Gav