Actually Mike, XNA 4 did remove XBox 360 features, such as point sprites. It was bullshit reasoning to do so, because the 360 hardware was static. But they abandoned that, because they were busy looking forward to their next half baked idea, WP7.
Engine and system level development is in C++. 'Most' of the game world programming game logic in scripting languages for their engines or doing other tasks. There are many tasks in game development.
but as most of the game development world can't or won't move away from a core of C++, anyone who really wants to get into the industry will need to learn C++ and DirectX/OpenGL eventually anyway