At some point I think a functional resume makes more sense but my experience with it has been largely negative. It seems that many don't know what to make of a functional resume since they expect a chronological one.
They want dates, where you gained your experience and what you did at each job. It almost comes off like you're hiding something, which you may be since it's also suggested to hide your age, your (over) qualifications, job hopping, long periods of unemployment or getting back into something you're not current with.
So you're screwed either way. They don't like it and wonder what you're hiding.
The problem is it's hard to give a complete picture with a chronological one when your career is long with many diverse jobs, like say consulting. My full chrono resume is very long; does someone
really want to read that? The problem is that each job gives the highlights to keep it short plus there's a lot of repetition. I would think that a functional resume would be welcomed by HR but I've seen the opposite.
The problem is they rarely hire 'the person' but a list of buzz words and requirements that can be matched up against a chronological resume. Using a functional resume means that they have to actually read it instead of scanning through it. Some people are so lazy or maybe they don't know how to read, that it amazes me.
On more than one occasion I've been asked where else I've used tool X. I tell them if they look down one job to the previous one, they'll see that it was also used there. And since they have a copy of my resume as a Word document, have they ever considered using the 'Find' command? They want chronological but can't read it. Maybe I should produce an audio version of my resume?
In short, with the right audience I think a functional resume is great but don't ditch the chronological one since that might be the next one they ask for.