This article doesn't really state the problem precisely; that problem is large data sets. The Linux kernel has a lot of code but weighs in at ~300MB - not even a gigabyte uncompressed. But if you start checking in lots of binaries - or if you use source control for assets as happens in a game production environment - you start having serious, serious scalability problems because hashing those huge files is no longer…
Vesta is a cool piece of technology in many ways. It has a pure functional build language, completely parallelisable builds with accurate caching between builds, etc. The guy who maintains it at Intel is a bit bitter because he can't understand why less capable version control or build systems are more popular. Which is really because vesta's advantages show up best in quite large projects, but once your project is that large, it's very hard to switch.
The web page looks moribund, but in fact it's still actively developed, and the developers hang out on IRC.