The way to deal with Ruby's performance in Web application is the same as with any other programming language:
ARCHITECTURE
This is easier to do in Rails than in most other Web Frameworks.
At the application level, by caching whatever is supposed to be cached and by managing the access to the DB in an intelligent way (since the bottleneck is usually on the "DB" access for most WEB apps).
Rails makes it very easy and natural to solve these problems. There are several abstractions for caching data, pages and fragments, and there are also very nice abstractions to deal with the SQL part in an optimised and reusable fashion (Active Record and AREL).
This is the reason why so many applications written in faster and not-so-expressive languages (like php) end up being slower than the Ruby counterparts. It's not so easy and elegant to tackle caching and querying with these languages than it is with Ruby.
At the infrastructure level it is reasonable to think of load balancing and all that stuff that I do not happen to know a lot about. I'd outsource that problem by hiring some platform as service provider, like Heroku or Engine Yard. Anyway. Deploying rails with load balancing is probably not very hard to do.