It's really, really good for <1000 LoC day projects that you won't be maintaining. (And, if you're writing entirely in the REPL, you probably won't even be saving the code in the first place.)
The ideal scenario is what you are saying but most of the time it boils down to deadline vs familiarity/skill (of the developer and the team) trade-off.
Happens all the time in my experience. It goes so far that big companies like Facebook, Google and Dropbox have all ended up writing their own Python/PHP runtimes or even entirely new languages like Hack and Google's new C++ thing rather than rewrite, because rewrites become impossible very quickly.
That's why - despite people saying language doesn't matter - it is very important to pick the right language from the start (if you can).
I suppose most of my point was that in the case described one should jump to the rewrite sooner rather than later, to avoid the situation you describe.