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Exactly. FP is a good idea, but it's not the *only* good idea in programming language theory. Practical programming languages should incorporate a variety of good ideas. After all, programming is hard; programmers need all the help they can get.
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More seriously, Justin’s real point is a good one: FP “won” in that more and more of its features are available ubiquitously. It also “lost” in the same way Kay’s OOP lost: most people do not want its purest form, and it’s not often used as *the* guiding principle for a language.
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SimonPJ once said about Haskell that purity is important, not laziness, but the latter requires the former. As a follow-up, I suspect "aliasing XOR mutability" is more important than purity...
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Aliasing, mutability, effects, seem to be part of a wider program of having support for controlling for, and taking advantage of substructural properties of programs in general. See also: uniqueness, linearity, information flow, capabilities, staging, phases, resource usage, etc.
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