The two are orthogonal, at least in some aspects. The fundamentals can - technically - be taught in any language (practically, noone's going to try teaching a course in BrainFuck). But we try to choose a language that gives them, if not industry skills, a platform from which to reach those skills rapidly. For example, teach them C and an OO language of your choice properly - and they can learn C++, ObjectiveC, Java, Python or any of a dozen others very rapidly indeed compared to someone who dove in, learnt Inferno and then graduated into an industry that never heard of it.

The thing to remember is this - we teach them the fundamentals for a reason, namely to get jobs in industry. At the back of all this academic teaching is a commercial reality that can't be forgotten. But you have to balance that with a long-term view of the student's entire career. We're trying to give them a degree course, not a Sam's book!