It turns out that most of the reasons a server needs threads is IO. With node, any IO is moved to a new thread, so you get most of the threading benefits, but are completely safe (provided libuv is safe).
Another consideration is JS being dynamic. It's very easy to create extremely flexible APIs and you can move very fast adding features without breaking things. While That SML or F# app will provide much better type guarantees (and somewhat better performance), those benefits simply don't pay off for a lot of projects.
There's also something to be said for functional vs OOP styles. You will never see a JS dev writing enterprise fizzbuzz. Even in very large projects, those layers of boilerplate abstraction simply won't exist. Part of that is being dynamic and part is being functional.
LWT is a thing.
As for being dynamic, my experience has shown that beyond prototyping, most dynamic languages don't scale with the teams.
You apparently never seen enterprise JavaScript, specially in projects with multiple consultancy companies being part of the mix.
Not quite (or somewhat): the IO is done asynchronously. You tell the kernel to notify you when any of a set of FDs are ready for reading/writing, and it resumes you when that is so.
I recommend reading epoll(1) or kqueue(1).
The event loop and non-blocking I/O are inherent in JavaScript. The language lends itself very well to scalable server-side programming.
One of the most significant reasons to use a language like Node for server-side async programming is that for any random library you choose to use there's a very high probability the library also supports async and won't block on you. For better or for worse, async is pervasive in the JavaScript ecosystem. Even languages that have good async frameworks, like Python, most libraries will block as it's the normal I/O mode for the language.
I still don't see what it offers against .NET, Java, C++, OCaml, Haskell stacks, and their concurrency options.