Good analysis, but I'm not sure about "a large number of downloads". Download counts can be pretty inflated due to CI/deployment processes that reinstall gems from scratch repeatedly. I've seen open-sourced gems that never got any real usage outside their original company get that number of downloads.
To add a bit of a sense of scale here, the popular Devise gem that's used for authentication in many Rails apps has 52.7 million total downloads and almost 20k stars on GitHub. strong_password has 247k total downloads and 191 stars. It has three reverse dependencies, none of which I've ever heard of and none of which have any of their own reverse dependencies.
This suggests to me that this gem is used by less than 1% of Ruby web apps (probably substantially less) and, more importantly, if you have a dependency on this gem you probably know (because it'd be a direct dependency in your Gemfile, not a dependency of a dependency).