DRY is a tool, not a design goal. I think part of the Rails issue is a combination of the early Rails hype/philosophy, and the fact that DRY as a concept is so easy to "get", that everyone gets it but often fail the next step of "why". Without the why, you often can't figure out the right when/where so it gets applied everywhere.
It feels to me like another oblique angle of Goodhart's Law; eg: "A rule of thumb that becomes a required practice ceases to be a good rule of thumb".