This rings hollow. It's like saying "C++ feature X can go horribly wrong when used without adult supervision, therefore C++ is unusable." This is especially silly coming from someone who favors a professional stunt language like C. If somebody uses too much overloading, reject their patch. If somebody makes a template tarpit, abuses operator(), or gets too fancy with operator overloading, send it back to 'em. Context…
1) Polymorphism is NOT functional programming. Using function pointers, which you seem to detest, is one aspect of functional programming. If you've only used C++, then you don't know what you're missing from languages like Lisp or JavaScript. (I should know. I was once like that.)
2) I seriously doubt the Linux kernel avoids function pointers. Ever heard of dispatch tables? Good C hackers know that smarter data structures make for simpler code.
3) Any feature that can go horribly wrong will go horribly wrong when you have a large project with lots of contributors. Everybody who successfully uses C++ on a large project has a huge "coding standards" document to keep the project from crashing and burning. I know Google has it, and I've seen others, too. Even I have it for my own personal C++ projects!
4) What Linus meant by "context dependency" is that you have to know the object's type in order to know what the function will do and you even have to figure out which version of the function will be called, based on the arguments. This is hell when you get a small patch in the middle of a larger function.