C# is actually heavily used by Indies because its the language for Microsofts XNA Toolkit. Many successfull XBLA indie titles (Supermeatboy, Braid, Bastion etc) have been created using it. Using MonoGame you can also bring the games to Linux/OSX/iOS/Android and other consoles (http://monogame.codeplex.com/).

Furthermore the highly popular Unity Game Engine offers C# as its scripting language which is the language of choice for every bigger and serious project because huge projects written in Javascript are alot more pain to maintain. Part of this is Visual Studio excellent features (you dont necessarily need Resharper).

So there actually is alot of C# in game development these days, mostly used as the Scripting language while the engine and APIs are written in C++.