C++ is clearly a far superior language than C, since it has many features that C lacks (although, C++'s object model isn't as ideal as say C#'s). With the coming off the new C++0x standard, why hasn't C been phased out to obscurity?

C++ has been around for so long, since the '80s. The Linux kernel has already been ported to C++ with negligible performance differences. I believe, with no evidence, that larger program structures benefit in performance if written in C++ than in C, if only because of object interaction. Don't get me started on "objects-in-C!" libraries, which are all a terrible hack. (Not that C++'s object model is the most ideal, but it is almost up to snuff with C# using common ad-hoc techniques.)