I disagree that C is superior to C++ for most projects.
First of all, C++ offers higher-level semantics which leads to an increase in productivity. According to [1], the ratio of C++ to C LOC is 1 to 1-2.5, but I'd be interested to read other studies or articles. My experience and [1] also contradicts your statement that rewriting code with STL/Boost will lead to increased code size. It's almost impossible for C++ to be more verbose than C - consider that you can write C-like code directly in C++.
Second of all, for a developer that has good knowledge of both C and C++, writing quality C is harder. C is very prone to programmer errors, much more so than C++ where you can choose to use libraries/language features that completely eliminate some of these errors. e.g: scope-based destruction, the STL data structures, string classes, etc.
Third of all, when discussing C++ many try to make C++ look as a frightening monster ("full-blown C++"?) where you have template meta-programming interacting with automatic conversions and operator overloading and all the other features in the worst possible way. This is not much different to claiming C is bad because you can use macros and void* for everything. The languages should be compared by real-world use patterns, not dreamed up criteria.
[1] Estimating Software Costs (Jones 1998) and Software Cost Estimation with Cocomo II (Boehm 2000)
"[...]that object-oriented programming is no panacea[...]"
While it is true that some have argued for OOP as panacea, this is mostly a strawman. OOP is one possible solution that works most of the time.