This was true for young developers or people without the right experience developing web sites at the time.
Already in 1999 our company was using TCL framework built as Apache module that was quite similar to Rails. Following some designs similar to AOL Server.
We just happened to be in Portugal and never had the press coverage that Rails did.
By the time Rails appeared we had already moved into .NET/C++ to improve the scalability of our product.
The same scalability issues that Twitter, LinkedIn and other American companies found out with Rails while deciding to move to JVM based alternatives.