So does this mean Erlang only makes sense if you work for a big company or have a large team to implement it properly? (I'm responding in light of davidw's edit which you may not have seen).
You can do web stuff in Erlang. It's just that it's not like Rails, where you start it up and it's easy to do so much with so little code. Since there's not as much infrastructure, you have to do more yourself.
That can still be worth it, given the advantages the run time gives you, but I think you'd really want to know exactly what you're doing.
Sounds similar to Node.js in that regard then. Lots more boilerplate and conventions you need to develop yourself.