Functions vs OOP

[William Gill]

During some recent research, and re-familiarization with Python, I came 
across documentation that suggests that programming using functions, and 
programming using objects were somehow opposing techniques.

It seems to me that they are complimentary.  It makes sense to create 
objects and have some functions that take those objects as arguments. 
Are they suggesting that any function that takes an object as an 
argument should always be a method of that object?  Conversely I can see 
creating functions that take raw input (e.g. strings) and return it in a 
format compatible with an object's constructor, rather than have objects 
accept any conceivable format for its constructor.

Am I missing something, or am I taking things too literally?