You wouldn't necessarily notice any problems using it - the problems may occur in later life - talc use has been linked with lung problems similar to those caused by asbestos. You don't need talc, you just need to dry properly. What you like about it is probably the smell, but the scents in baby products aren't that good for you or them either.
Having said all that, generations of babies have grown up smothered in talc and I am sure it is the rare few that are affected, but why take the risk.
There may have been studies linking it to asthsma as well, but I am not sure.