Neither matter, what matters is profitability. It doesn't matter if you can serve 10,000 requests per second if the cost of that request exceeds what you're paid for it. For most sites ruby is profitable, the value add from ruby is decreased cycle time between releases which can increase the profitability of your site more than increasing the pages per second can. The vast majority of sites don't need to scale beyond…
1) AMZN and GOOG have proven that pageload speed does in fact directly relate to profitability. 2) Regarding "The vast majority of sites don't need to scale beyond a single server," you could make the same point that the vast majority of sites are not profitable either. It's a total non sequitur in either case. 3) Your point that it "costs less" to develop in Ruby which can increase the profitability of your site is…
I think in this mini benchmark, it's not so much that "PHP" is fast (as a language, it isn't, really), rather that Ruby + its various frameworks are pretty pokey.
In any case though, while I remain a Ruby fan, the grandparent sort of misses the point: by being more efficient, you have a wider range of things that can make you money. If you have to have a huge amount of resources to get some pages up, doing ads or some other low-margin activity might not even be feasible like it would with a faster solution.