It sure does. It definitely affects the ability to make me function in life. Interpersonal relationships, school, keeping a job, etc. My moods were out of wack, and I always felt different, like something was wrong with me.
I think if you're medicated you still have that illness, because it is only the medication that is keeping you stable. Otherwise you would go back to the same behaviors.
Before being stable, I would hop from job to job, I'd snap at friends and had some really rocky relationships, both romantic and friendship. I had no idea why, but the diagnosis completely makes sense to me and I have accepted it.