Yes in the future you can convert IAP to Managed APs from the controller
What funtionalities does not have
Well i can mention you some
It does not have VPN Termination(so no via or remote AP)
It does not have the captive portal in which users you create have a time in which they will expire... on instant the users just dont expire, you have to change it manually.
It does not have advanced setting to twick like with the wireless controller.
And some other stuff...
When i get home i can tell you the others if noone else have answered you
Cheers
Carlos