Considering that the Everything machine (the thing that runs perlmonks.org) is being developed in Perl, i'd say it is ;-)

This is, in fact, one of the places where Perl shines -- it's mainly string/file mangling, database connectivity, interfacing to other systems.

You might take a look at other websites powered by perl: http://kuro5hin.org/ (Scoop), http://slashdot.org/ (slash).

-mk