This is all fascinating ... but does it feel like a sustainable approach going forward, or more like a turbo-charged horse and buggy? Developer happiness aside -- there are plenty of folks who like JavaScript just as much as Ruby -- and assuming that we're talking about an non-public-facing app (like Basecamp Next), is there still an argument that can be made in favor of doing your UI on the server side? Even just in…
I'm not sure what qualifies as sustainable or not in your book. We've achieved our speed goals (sub 100ms pages for the most part), our development goals (Ruby, Rails, server side pleasure), and our UI goals (app that feels like a web page, not just a single-page JS app). I'm sure Flash or Silverlight or other RIA people would argue that anything that's not a compiled native experience isn't as flexible or as fast as…
I think this is a key point and is one reason that server-side approaches will be relevant for a long time to come. Some applications, such as Gmail and Pivotal Tracker, feel a lot like desktop apps, and heavy use of client-side code is a necessity in these cases. But many—I'd argue the vast majority—of web applications produce a better user experience when they feel like ordinary web pages. I don't see that changing any time soon.