Most modern GUI frameworks don't use the tree-of-HWNDs anymore, though. Which is to say, the entire visual element tree is handled internally by the framework's own compositor, and the top-level WM_PAINT just renders the resulting bitmap. WPF and Qt do it that way. That said, there's still no shortage of apps that are implemented in terms of native Win32 widgets - pretty much all the non-UWP apps that come with Windows are like that. So when you are looking at, say, Notepad or Explorer, they still fundamentally work the way the article linked to above describes.
But of course that can be combined with diff&patch as well...
Which they are, through extensions such as https://www.khronos.org/registry/EGL/extensions/KHR/EGL_KHR_...
For views, you either get some form of MVP, with explicitly implemented model interfaces that provide the glue between the views and the object tree they are representing, or data binding that effectively creates that same glue for you. Here's an example from UWP:
https://docs.microsoft.com/en-us/windows/uwp/data-binding/da...
So no, it's not really functional. Quite the opposite - the state is global and mutable, and UX actions that purport change things really change them. That also makes it all very intuitive, though.
The concept is somehow complex to master, I compare it to getting monads to click, but when you understand it, you are able to envision how to build the full UI architecture as having a Lego box at your disposal.
For everything, views, stylesheets, event handlers, data models.