The B757 did fly into Funchal if my memory is correct before the runway extension, Air Europe damaged one landing there.
I first landed an AE757 at FNC on 27th November 1985. Thanks to the performance we always flew direct to LGW or MAN, whereas the 737's had to refuel at Porto Santo on the way home.
The FNC restrictions were based on not being able to turn round on the runway, not take off/landing performance. From memory the AE 757 nearly broke a main leg turning with too low a forward speed (happy to be corrected though).
Sorry groundhogbhx, you are wrong. It was possible to turn on the runway and the AE 757 was damaged after bouncing and hitting the ground nosewheel first.