I stand corrected, you're right! I hadn't heard about OpenResty.
It's amazing that this exists, I would have never thought it possible (because of what I saw as inherent limits in what can be expressed in terms of nginx configuration), but now that I see it, of course it is :). From what I gather, custom code can be written as Lua scripts, and many of the modules are written in Lua themselves.
As far as I remember Lua scripting is brought by the lua-ngx module, but it is also possible to use JS or the JVM (ngx-clojure) for location handler, or even write your own nginx module in C, nevertheless Lua is the first class citizen.
I personally don't mind it, but obviously the ecosystem and the market for Lua is much smaller than JS. In fact, I'm only aware of itch.io that runs on OpenResty.
It looks like Lua is the main scripting language; which is a fine choice by me; the few times I worked on redis transaction scripting in Lua (since Lua is the language for doing that) the experience was very pleasant.
Are you building a project (or projects) on OpenResty?