Horror stories about legacy Rails apps? I have a couple, though not "taking over" them but rather fleeing from them. (My employer is in the process of replacing a home-built Rails-based code review tool with Review Board, and I've looked at that tool's code - it couldn't be rehabilitated if you tried. To be fair, it was a weekend project that spiraled out of control...but that in itself is saying something.)
Bad code can be written in any language or on any framework. I would suggest, however, that when at larger scales, there are significant benefits to a more restrictive language and tool set. I write Java at work, and while there are cases where it's not as expressive as I'd like (s'why I write my own code in C#, which is as expressive as I'd like), reducing the ability of developers to Do Stupid Things is, to me, a very large plus.
The claim that people who know Ruby and Rails have taught themselves--well, no shit, right? I taught myself Java, too. And C#. And PHP, Python, Ruby, and half a dozen other languages. Of course sub-par and mediocre Java developers are churned out by college. So what? Hire ones who aren't. And if you give it ten years (assuming the Rails fad has legs--I'm skeptical, but just for argument's sake let's assume it's not) colleges will be churning out mediocre Ruby hacks just as well.
Your comment reads as fanboyism and not much more.