The motivation for writing the software in C is this: Code Reuse. NASA and it's associated labs have produced some rock solid software in C. In space missions commonly the RAD750 is used (with it's non-hardened version, the MCP), along with the Leon family of processors. Test beds and other ground hardware are often little-endian Intel processors. VxWorks is commonly used on many missions and ground systems, but so is QNX, Linux, RTEMS, etc... The only common thing the diverse set of hardware, operating systems, and compiler tool chains all support is ANSI C. This means that nifty languages like Erlang or whatever - though there may be a solid case for using them - is not practical in this circumstance.
I know some clever folks in the business have done interesting work on ML-to-C compilers, but it's still in the early R&D phase at this point - the compiler itself would have to be thoroughly vetted.