"it is not something that is ready for the prime time."
Thats why millions of users are using hundreds of large scale web apps right now built on Rails and/or Ruby (ie: Github, Slideshare, Hulu, Justin.tv, Basecamp, Alice.com ...the list goes on and on http://rails100.pbworks.com/Alexa+Rankings).
Right...
Might want to do some homework before making such a statement. True Ruby has memory issues. Running Ruby enterprise edition by passenger helped us a ton. Typically memory issues have to do with poorly written ruby more than anything...which rails makes it easy to do....like Product.all.each type stuff ... stupid example