Why hasn't this happened? Preumably if you use an advanced language you'll be a lot more productive because of the language and because you have the best developers.
Why haven't we seen shops that use advanced languages just utterly clean up? "Oh, you're doing 30fps with 1m vertices -- we just did 90fps with 50m vertices -- and btw, we did this w/o using the GPU". Or "Chrome? We built a new web browser that supports every draft of every aspect of HTML5, w/ a Javascript parser that runs at twice the speed of Chrome, and we wrote a new H264/WebM codec that doesn't require a GPU and can do HD video on a 286".
It just seems like for all the advantages that using an advanced language presumably gives, the software I see is simply "competitive". Maybe it will be the best in some spaces, but within the range that one would expect the best to be if everyone used C, for example.
And even among those who know these advanced languages really well, we don't see them fighting for them in their organization the way one might think given all they should presumably provide. Think Norvig, Steele, Abelson, Meijer, etc...