Is functional programming overtaking the IT industry?

I think there's a bit of a resurgence in recognizing that sometimes functional patterns work better. That doesn't mean excluding objects/classes but recognizing that some bits of control flow are often much easier to understand with functional approaches over class-based events.

Not everything works well in an MV* pattern, and it can often lead to complexities that outweigh doing things the "hard" way, or even having a single state tree. Redux in particular distills this very well imho.

That said, classes do well to encapsulate localized state. There's really room for both, and even in the same application. I think it's nice to see the discussion and options opening up.

No.