Functional programming as a strictly immutable lazily evaluated paradigm in which to do everything from the bottom to the top is not useful for most apps.

This "but" is a complete fail:

> Y-combinator founder has noted that his and associate's choice of Lisp as basis for one of the first online webstores ... GONGGGG!!!

Lisp isn't a functional language. Lisp has mutable variables, mutable data structures, loops, goto, ... Lisp supports applicative programming with immutable objects where it is desired.