I'd argue that. With proper use of C++ classes, STL and custom allocators you can achieve same performance as in C. STL may seem bloated, but most of it is compiled inline, e.g. std::vector boils down to simple pointer arithmetic. Coupled with the fact that compilers improved over the years, I'd say C++ overhead is something not worth worrying about.
EDIT:
I'd argue this point too. .NET became widely used as an alternative to Java in IT.
Though I'm not implying that games must be written in it.
However MS is sinking a lot of money in pushing the platform in all directions, even game development (managed Direct X) and operating systems (experimental MS operating system, Singularity). My university, for example, offers a scholarship from MS for a PhD research in bioinformatics with C# and SQL Server 2005.