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Considering the web side of it, yes, Perl is being used in far fewer places now. There are two major reasons for this: one is the abundance of other languages (PHP and ::shudder:: ASP, for example). Another is the fact that a lot of sites backed by Perl programming crashed and burned when the dot-coms did. You know what? I don't see this as a big deal. The techies who wrote those sites are still around, likely still using Perl, and hopefully not hurting its reputation by using it to support companies that will never, ever, make any money or do anything useful...ever. (Not to say that all dot-coms were this way, but c'mon, there were quite a few useless companies out there.) These sites were thrown together (in many cases) to make a quick buck. Granted, Perl can be great for quick-and-dirty code, but do we really want it making up the majority of the volume of the code out there?
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For example, I consider the explicit availability of pointers as an important feature of the language that greatly increases its expressive power and far outweighs risks of errors in hands of unskilled practitioners. In other words attempts to make the language "safer" often misfire.