It's the fact that if there isn't a cabinet plugged into the amplifier, the power just basically circulates over and over inside the amp's circuitry. Not good in the long run. Like Jeff said, it takes a while, but it will definitely fuck your shit up eventually. Output transformers are typically on the expensive side to get repaired/replaced. Those are usually the things to go first. Then anything else is fair game. You have something that isn't intended to circulate 100-120w continuously, but rather disperse it into the speaker output, eventually something has to give. It's common sense...to me anyway.
Using an instrument cable vs. a speaker cable is really debateable...however the argument that a speaker cable is more suited in the interest of tone is definitely a strong one. An instrument cable will surely work, but it'll get hot, malfunction, make your tone different, and cost you more in the long run due to them wearing out a lot faster. A speaker cable will last longer, carry the load a hell of a lot better, and benefit the tone a lot more.
Basically, an inst. cable will work, but if you care you should use a speaker cable.
*Disclaimer: I'm drunk right now. Yes.*
!~e,.a