If your language isn't completely terrible, then you can choose to use a named function anywhere an anonymous function will do. The libraries can never force you to not give your functions a name or not put them in a global context. That's why it's a harmless feature.
Templates might have been harmless if there was a way to do basic obvious stuff (callback functions, strings) without using them.
And that is assuming you can nest functions, but chances are you will have to put that function somewhere removed from the actual call to sort. This is the exact problem the STL hits: it assumes, for many things, you want a functional style - and then it doesn't give you a way of writing lambdas. You are left with one-off functors littering your code, wishing you could write that lambda.
I would like to stress: I think lambdas are a requirement for any language, I just take issue with the argument presented to convince lambda haters.
Templates might have been harmless if there was a way to do basic obvious stuff (callback functions, strings) without using them.