That's one option: to admit that functional programming is the wrong paradigm for some types of problems. Fair enough. I'd put money on that. But it also may be that almost no one has been thinking about problems like this, that functional programming attracts purists and enamored students.
The language features that help with the problems small programs have are intrinsically easier to show off than those that help manage larger systems. Beyond a certain point, I don't care how easy something makes a program that will never grow beyond a page, though. (If that isn't easy, your language has serious problems!) I'm more interested in how these techniques / paradigms break down, not how well they work on examples chosen for them. You can't always choose your problems.
(And yes, one of the main things I've learned from Unix is that it's usually better to break large systems into a team of smaller components, but that's neither here nor there. Also, informed use of multiple paradigms is likely the best long-term approach, but that's not a position that necessarily translates well into sound-bytes.)
Of course, it's easier to hype languages that let you do short parlor tricks, particularly on web forums.
Also, he has a followup posted here: http://prog21.dadgum.com/4.html