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1. One possible problem is where one function is needed by another developer ands that is in somone elses control in another class.
2. Extra work just managing the 7 or so class's instead of one file.
3. Depending on the class, Database resources or other resources, trying to manage them between the separate classes might make things a little more complicated then if they are all in one class (webservice).
I hope this helps this was just off the top of my head at 7:30am.
To split the actual functions that are accessed via the webservice into seperate files you would need to create individual .asmx files and put the function in them. That way you could check them out individually...but in the end product after development you may not want this so you'd have to add them back into one main asmx file.