Yes, people use languages with solid theoretical foundations less because they perceive them to be extreme. That was my point.
Quote: "I can't imagine [... any measure that] makes these 'purity-oriented' languages appear to "work better in practice".
How about SLOC required to implement a task? Take a look at this: http://web.cecs.pdx.edu/~apt/cs457_2005/hudak-jones.pdf Its an old paper, but the findings are still perfectly valid.
Quote: "each process is like an object, holding onto state".
This is the actor model. Erlang is an uncompromisingly pure implementation of the actor model, which is why it is so effective. Again, I think you are making my case for me.
Your use of the term "sacrificing flexibility" sets up a false dichotomy between purity and flexibility, as though there were programs that are difficult to write in Haskell.