The main problem with C++ is that programmers think too highly of themselves, run out of talent, and introduces multiple memory stomps that other guys have to spend time tracking down and resolving.
I do believe C# is the future going forward without a doubt. But for now, C++ is still king of performance and memory management. I think it’s a great idea for the core of the engine to be written in C++ but game code can be higher level (byte code, etc)
Where Epic Games went wrong in the past was UnrealScript. Which kept me away from UDK. It couldn’t be debugged, couldn’t rapid prototype, took awhile to compile, etc. It had all the disadvantages of a scripting language and none of the bonuses lol