If your question speaks to whether or not MAME depends on some games seeing coin input in either coin1 or coin2, the answer is yes, but only for a few games. I can't remember off the top of my head, but there are a few games that require you to put a coin in the proper slot to play that player (think: Turtles or Xmen, for example) But I think you can get around this by remapping all coin inputs to the same button. Not sure if that would cause any issues or not.
For my setup, since my start buttons are genuine LED Atari cone buttons, I have separate inputs because for some games (I THINK, anyway) my Minipac flashes the correct LED's for atari games depending on how many credits are inserted -- player one start flashes when coin 1 is inserted, and player 2 start flashes when coin 2 is inserted.
For most Atari games, it just flashes player 1 start for 1 credit, and both players 1 and 2 for two or more credits.
The vast majority of games should work just fine with only one coin input though. If you're pressed for space, you could always 'shift' your coin button, and then you could have coin2 ability.