Why? Maybe he was paid by the linux foundation during that time? Other sources of income? The gratuit "of course" is not clear to me.
Maybe I'm misunderstanding what you try to say, but: " rails.app ought to make Rails more popular [...] wider deployment of Rails enriches Ruby developers". Are you saying that Yehuda should not make money from his efforts, but the Ruby developers in turn can use the results naturally for their gain?