That being said, C# is a huge step above C++, at least with respect to application development. Garbage collection aside, it has first-class functions, well-implemented closures, an integrated query DSL, and decent (if a little awkward) reflection capabilities. It's not an exciting language, and I don't feel particularly cool saying I use it, but I think it gets a pretty bum rap.
I have dealt with Java memory problems several times now and am convinced that garbage collection has no business near performance bottleneck code.
I'm not saying C++ shouldn't be used because if it really adds to the quality of the result the additional effort may be worth it. It's a balance between the quality of the product and time to market.
There's one more issue that shouldn't actually play a role but does: I have rarely seen C++ code that isn't full of incredibly stupid errors like copying large collections three times in a single function call. Even smart professional programmers very often write C++ code that is complete crap and way slower than the most naive C# or Java implementation.
But as someone who writes very data intensive apps I have to say there's just no way around C/C++. C# and Java VMs have twice the memory consumption of C/C++. I don't know whether C code uses more memory than assembly, but I doubt that a factor of two will ever be negligible, particularly because it translates into a factor of 100 as soon as you run out of memory and have to hit the disk.
Unfortunately the combination of C/C++ and dynamic languages doesn't work for many of my own scenarios because of the GIL.
I mean look Rails (just as an example). A typical rails app runs in 16 processes, each consuming 150MB of RAM (after a while of running) just for the framework itself and a few controllers and views basically. Nothing but little helpers doing CRUD.
There's just no memory left to do anything interesting with data in-memory because all that data would have to be duplicated in each process. That's why dynamic languages driving a C++ core doesn't really fly for interactive apps. It works for batch processes like what google does.