How anyone could consider the second screenshot of gedit more functional than the first is beyond me, but that is probably why I'm on Xfce and not OS X.
The functionnalities are not lost, and using keyboard shortcut is more efficient/functionnal anyway, especially on basic functions like those on the menu of the first screenshot.
I can understand that some users prefer icons, but describing the second screenshot as "horror" and "less functionnal" because it does not have pictures in the menu bar is simply wrong.
You're right, they're not lost. Instead, they're hidden and obfuscated behind multiple layers of menus instead of just being there.