Rails isn't even participating in the fight
It never did and it shouldn't.
Rails became popular because with it developers had the ability to cut down on soul-sucking activities in their day to day jobs, like building yet another authorization system, or yet another admin. That some people ran with it and scaled it to its limits, that's only because they felt in love with its ease of getting things done.
That's its main advantage. When it comes to getting things done, there's no better alternative.
The fight to become the best backend API
is much different than the fight to become the
best html server.
Basically the best backend API is the one that is the fastest / that scales better both horizontally and vertically / that's more malleable to new developments and protocols (e.g. SPDY, Websockets) / that has the least overhead. From that point of view, if you're running on top of a VM that has a GIL, or that doesn't support real thread-based concurrency, then the "battle" is already lost.
So you see, there is no fight. That fight was won long ago by the JVM and the frameworks that run on top of it. Every big website on the web right now (except Microsoft-stuff), runs either on top of the JVM or with custom-baked solutions written in C/C++.
That didn't stop people from building cool stuff on top of PHP, or Rails, or Django, or every other platform that brought instant gratification, but that's another point entirely and we are talking about "battles" here.