Good read, and I just read this post while attending Erlang Factory in SF, in the middle of a talk about Lists and Strings :)
I asked the teacher about your comment on String manipulation. Yes, it is pretty in-efficient. There are libraries to make manipulation easier, and, you can always go down to binary types, which is much more performant.
We chose to use Erlang for a variety of reasons, and String manipulation isn't a problem for us (it's definitely a pre-mature optimization point (for us) at the moment).