Nearly every major game engine out there uses scripting for actual game logic - it decouples the engine from game code, which is desirable (no rebuilds to alter basic game behavior, for example, enabling faster turnarounds and prototyping).
Hell, the most popular game engine of our day (Unreal) uses its own proprietary JavaScript-like language for nearly all game code. Other engines like Gamebryo leverage Lua extensively - to the benefit of both developers as well as consumers, who can modify the game (not an iPhone advantage, but still).
For the record, UnrealScript is closer to Java or C# than JavaScript.
As an aside, it has some very interesting support for simultaneously running the same code in two network locations, with the authoritative version updating the non-authoritative ones after a network sync, to help eliminate some of the drawbacks of network lag. Also, modal behaviours (used for AI that needs to do different things when touched etc. depending on its state).
Hell, the most popular game engine of our day (Unreal) uses its own proprietary JavaScript-like language for nearly all game code. Other engines like Gamebryo leverage Lua extensively - to the benefit of both developers as well as consumers, who can modify the game (not an iPhone advantage, but still).