False. I started out in C straight out of school 3 years ago. Like you say, it depends on the domain, but C is still used all over the place. I loved every minute of it (before I left my job to do my startup), but then again I may be insane :)
Ah, I see what you meant: "No one starts learning to program in C anymore," correct? I thought you meant, "no one starts out their career in C." In that case, yes, I started programming in BASIC when I was very young, then several other languages, and then C during college.
Don't forget Basic, visual or not ;)
Matlab is also very popular in engineering.
Personally, I started with toy programs in QBasic that an uncle taught me, then playing around on the TI-80, then Matlab when I entered uni (first 'real' programming).