Smalltalk is making a comeback - Gartner analyst
blogs.gartner.com
blogs.gartner.com
It seems to me that the biggest case for Smalltalk is that it was the foundation for Ruby, and Rails is definitely pushing Ruby into the top tier.
In other news, Alan Kay = badass. He came to my class and talked about how he was trying to use LISP to code TCP/IP in 80 lines.
For instance, Objective-C adds quite a bit to C, and replaces C++ features, yet it can bind to either of those languages. And there's been work done to make the entire Python standard library usable in Ruby.
Ruby does make adding C easy. Smalltalk is a little less friendly in this regards. But only a little and that is implementation specific.