It's much slower, and doesn't lend itself as well for building the program up from small, independently tested and refined pieces. The speed of that feedback loop really matters - the slower it is, the larger chunks you'll be writing before testing. I currently believe the popularity of TDD is primarily a symptom of not having a decent REPL (though REPL doesn't replace unit tests, especially in terms of regression testing).
BTW. there's another nice feature of Lisp-style interactive development - you're mutating a living program. You can change the data or define and redefine functions and classes as the program is executing them, without pausing the program. The other end of your REPL essentially becomes a small OS. This matters less when you're building a terminal utility, but it's useful for server and GUI software, and leads to wonders like this:
https://www.youtube.com/watch?v=gj5IzggEWKE
It's a different way of approaching programming, and I encourage everyone to try it out.