The way you have it wired the light serves two purposes. One is to provide power to excite the regulator so that the alternator will begin to charge. The other is to provide an indication of the system working when the light goes out. With the light not working the alternator never starts to charge.
Normally manufacturers would use a light along with a resistor so if the bulb burned out the resistor could provide the power to the alternator for it to begin to charge. On systems with lights for both oil pressure and charge indicator you will often notice that the charge indicator bulb does not burn quite as bright as the oil pressure indicator bulb when the switch is on with the engine off. The resistor in the indicator light assembly is the reason for the difference.
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