There are so many aspects of Ruby that make it well suited for teaching kids about programming that go WAY, WAY beyond the ridiculous observations you've made. You might as well have pointed out the performance limitations of Ruby too. Installing Ruby is as easy as opening a macbook. It's already there. It's not like little kids, learning the language for the first time are provisioning servers and installing from scratch.
It's not a matter of Ruby programmers being emotionally invested. It's a matter of Ruby, very often, being the right tool for the job. And for teaching purposes, I don't think anything else comes close. The fact that just about everything in Ruby is an object makes for some very interesting syntactical niceties that a child's mind can easily grasp. For children, the higher level the language, the easier it will be to grasp and remember. It doesn't get much easier than
100.times do
Whether or not a programming language has 1st level functions or is production ready is not a consideration most people make when teaching a child. Learning how to code isn't about performance and elegance, it's finding your creativity, perseverance to stick with a problem, flexibility to adapt and change based on new constraints. After all these are the young minds that will be building the higher level programming languages of tomorrow.