I’m not saying POSIX shells are without fault but they weren’t just created because C is too low level; they were created because people used a terminal who weren’t always techies so Bell Labs created a language which anyone could easily write simple programs with. Granted that need has dissipated a little but your solution of having one language to rule them all creates more problems than it solves (really the only problem it solves is OCD for a few LISP enthusiasts).
The reason there are so many different programming languages isn’t just an element of NIH; some languages do genuinely handle some use cases better than some other languages. Plus there is always going to be an element of user preference. So your idea of a perfect system would be hell for a great many other people - myself included (and I do generally enjoy functional programming).
At some point when I wasn't proficient enough in Bash yet, I was writing scripts for automation using Perl and Ruby. The 'logic part' is definitely much easier in these languages. But simple file/directory stuff is far more complex actually. A lot of this has to do with error handling and different expectations how that is supposed to work. In a default shell script, errors are handled very forgivingly which is very much how most people work when performing tasks manually - not every step is super important.
On the other hand Shell scripting documentation is crap. Most of it is from 80s/90s, full of irrelevant details for the practical person. A bit like 90s/00s JS documentation before MDN.
Compare Rust, which tries to keep allocations (and the size/asymptotic complexity of allocations) explicit and visible.
[1] The optimizer catches some cases, but not all of them.
But mm... why you would want to mutable state like current directory in first place? Or even mutable filesystem? Why aren't those just immutable parameters of your program?
Because that's how just about any OS, application, library, filesystem, device driver, database, nearly everything related to computing at all, works. Reinventing the universe has never, ever lead to success. If you want even the slightest hope for non-negligible adoption of your operating system, you need to be able to interface with the rest of the world. And that's why you don't want the filesystem to be an "immuatble parameter of your program".
