Look at your programs and count the number of times you use higher-order functions. I just looked at the code I wrote today in Ocaml. There's about 450 lines of code, in 29 functions.[*] 20 of those 29 use higher-order functions (ie, functions as values) in some way. 15 of the 20 that use higher-order functions explicitly construct closures. The other 5 simply take functions as arguments. That's way more than 2-5%. One of the reasons the percentage is so high is because I tend to use folds (like map or reduce in Python) instead of explicit recursion or looping. Eliminating explicit loops means I can't get the pattern of iteration wrong -- which makes a whole class of bugs impossible.
Anyway, I think Paul Graham is wrong about the usefullness of OO. But when you write the language, you get to decide what goes in it. That's why I'm writing my own language instead of complaining about Arc. :)
[*] Yeah, I know I should refactor -- 15 lines/function is on the high side. But this is pure throwaway exploratory code. Once I figure out how to do it at all, I'll make the code good.