I do agree though it's possible and commonplace to do a blend of both, plus structured programming, plus just general hackery. I've often seen OO systems with a big pile of pure functions, particularly math functions, because math mostly is just functions. And it's quite nice! You don't have to worry about the interactions, the advantages of pure functions are quite clear.
I agree with you that mutability can explode the amount of state you need to be aware of. Milewski just tweeted in response to the article "The problem with OO is that, even if you expose 7 things on the surface, there are hidden dependencies that you cannot ignore: object A may store a pointer to B. You can write complex functional programs, but the syntax forces ugliness to the surface for all to see."
https://twitter.com/BartoszMilewski/status/12946650880543784...
However that's the nice thing about small objects, they better contain the mutability chain reaction. A small inner object cannot see anything else. Whereas in a big kitchen sink object every attribute and every method is in play.