MVC makes sense for web applications.
In web applications, you process some data (on SA: writing questions, adding comments, changing user info), you have state (logged in user), you don't have many different pages, but a lot of different content to fit into those pages. One Question page vs. a million questions.
For making CMS, for example, MVC is useless. You don't have any models, no controllers, just a pages of text with decorations and menus. The problem is no longer processing data - the problem now is serving that text content properly.
Tho, CMS Admin would build on top of MVC just fine, it's just user part that wouldn't.
For web services, you'd better use REST which, I believe, is a distinct paradigm.
WebDAV application wouldn't benefit greatly from MVC, either.
The caveat on Ruby for Web programming is that Rails is better suited for building Web applications. I’ve seen many projects attempt to create a WebDAV server or a content management system CMS with Rails and fail miserably. While you can do a CMS in Rails, there are much more efficient technologies for the task, such as Drupal and Django. In fact, I’d say if you’re looking at a Java Portal development effort, you should evaluate Drupal and Django for the task instead.