>If there's any chance that the application will grow beyond a few developers I think it hurts more than it helps.
Simply not true.
I've consulted on multiple teams across products built with Rails. Products that supported hundreds of millions of requests and generated a similar levels of revenue.
Rails scales - programmer productivity, traffic. It scales.
One thing I've taken to pointing out, and it seems like you have way more experience with which to back it up - is that it's not just about scaling to millions, it's also about scaling from zero.