I think everyone else has pretty much summed it up.

My answer is: No, but it is closer than anything else. It is a huge stepping stone towards a truly powerful web applications framework.

Rails won't stop innovating any time soon. There's an absolutely enormous amount of innovation going on in Rails plugins / RubyGems. Eventually the different plugin/gem approaches to common problems will become standardized, and those standardized approaches will make it to Rails core.

Once Rails core has all of these awesome things standardized (multi-stage deployment, more "ruby-like" templates (ERB replacement), fixtures replacement, automatic generation of integration tests, better caching, etc), it will become both great and a bloated piece of crap.

Then, another platform emerges that does to Rails what Rails did to PHP. It will take all of the features of Rails+Bloat, and put it in a sexy package. Then, THAT will be the holy grail.

At least until the cycle happens again.