I don't believe anybody that says they test all functionality. Most? Sure. All? No way. Not in a non-trivial codebase. Article about the group that writes the space shuttle software, sort of relevant?: http://www.fastcompany.com/magazine/06/writestuff.html
A full run of our test suite literally takes months on a cluster of hundreds of CPUs (obviously, there are also faster versions of the tests which are run frequently). While I have a long list of additional test coverage that I would like to add, what we test is much closer to "all functionality" than it is to "a few critical things".