I love scaffolding and it extremely helpful for prototyping. But Should we use scaffolding for developing application as such?
There is no harm in using scaffold to kick-start development of your application. However, if you are a newbie you need to understand how stuff can be done without it. Scaffold is a tool for rapid prototype development in rails and can be used if you can alter it to suit your requirements quickly.
i use it a lot
i strt off with scaffolding and then gradually replace it with custom code; it's a great way to get something up and running pretty quick.
The name "scaffolding" is sort of a misnomer in Rails now (post 2.0). The structure generated through scaffolding generator is more of a base application to build on, rather than a "prototype" that you throw away later.
At least, if you are designing your application to be RESTful, you will find yourself keeping most of the scaffold generator produced controller and model code, while adding more logic to them. You will perhaps replace the views eventually while keeping bits and pieces of Ruby code in them.