Yes, I often have 10K plus processes running on a production server. It's caused troubles at time due to misbehaving processes, but mostly it's been ok. Linux is surprisingly good at this (wasn't always the case).
For the times when some of my processes were misbehaving, it was easy to identify which processes were misbehaving with "ps", "top", etc and resolve with "nice", "kill". This killed the bad connections without bringing the rest of the app down. Sysadmins like me.
That indeed was a dilemma. Although it focusses on doing one thing well, there were also a few core things that are useful to support a websocket based app - namely a place to serve the actual web content from (static) and the ability to use websocketd using vanilla http instead of websockets (cgi).
It allows you to write a WebSocket end point, in any programming language, without having to deal with building socket servers, dealing with WebSocket protocol handshake/parsing/formatting/etc, worrying about threading etc. Just write a script that reads and writes to stdin/out.
I've built chatrooms with websocketd. To do this, you a shared pub/sub store. Redis is great, so is Postgres (with its pub/sub add-ons). Storing chat data in a store is more durable than keeping it in memory on a single machine.
CGI fell out of favor for this reason, but WebSockets have a different runtime profile: instead of having to deal with 10K shortlived requests per second, WebSocket endpoints have much fewer but longer lived connections. This is why the CGI model actually works well on WebSockets.
For the times when some of my processes were misbehaving, it was easy to identify which processes were misbehaving with "ps", "top", etc and resolve with "nice", "kill". This killed the bad connections without bringing the rest of the app down. Sysadmins like me.