Modern bloat comes from the software footprint, not so much about performance gains anymore. Compare the UI of MenuetOS with the latest GTK and the 100 shared libraries involved.
It's not so much that C would be slow but that with C and high-level languages it's very easy to do lots of the wrong kind of work.
C is so close to assembly that these seems quite unnecessary. Although I do agree with one of the developer's points that Assembly has a kind of beauty about it.
The porting to C also cemented C's winning of the systems programming race, and fully liberated systems programmers from the underlying machine. C made the machine-word obselete by standardizing on a few types with relative widths.
If that wasn't the case, something like BLISS would have caught on, and BLISS didn't look the same on different platforms; its data types mapped 1:1 to underlying machine words and you had to deal with explicit alignment, allocation, and linkage. Explicit addressing modes and explicit heap and stack allocation modes. IOW, a royal pain in the butt, even though bliss was expression-based and well thought out (read all about Olin Shivers' praises for Bliss, though personally I don't see why: http://www.paulgraham.com/thist.html)
C is good.
http://www.cconcepts.co.uk/products/publish.htm
Lol. Looking at those dialogs brings it back. I probably laid most of those suckers out.