"Developing Erlang at Yahoo" - New Delicious was rewritten in Erlang
blog.socklabs.com
blog.socklabs.com
The script that copies the data from the old system to the new one is what they wrote in Erlang.
"Yahoo Switches to Erlang" would have been even better!!!
http://blog.therestfulway.com/2008/09/webmachine-is-resource...
When we were doing Powerset's infrastructure I didn't even think of writing a whitepaper or anything, I didn't realize that "Just doing it functionally and in a distributed fashion" was grounds for attention.
You've just answered your own question. You can solve every problem in every programming language -- as long as you like what you're doing. If you pick a langauge you like and a project you like, it will probably get done.
and beyond fanboying, there is nothing particular about erlang that makes it appropriate for this problem. and don't say "scaling"...yahoo's answer to scaling is the same as google's...lots of machines (far more than needed), and lots of money.