Quite the opposite - functional programming is becoming very appealing as a practical alternative for building large, multi-threaded, correct systems.
True, it might be a bit more tedious to write a program that type-checks, but as many (including me) have been repeatedly amazed, it often works correctly right away, with minimal debugging.
But it also may be that almost no one has been thinking about problems like this
Mutable state is a fundamental issue that every functional programmer deals with every day. Indeed, it might be sometimes frustrating to pass around state that in C would be directly modifiable, but the benefits are huge.
Pure code has been called a "scarce resource", and that's exactly right - once it works, it will always work, no matter how huge is the system you build on top of it.