Deciding when to use any language--including Ruby--depends on the appropriateness to task and the amount of yak shaving necessary. Zed Shaw explains when Ruby's MRI or JRuby is the best language for the job, and when it really isn't.
the most important issues are, in short:
What Ruby Makes Easy...and Hard
Systems scripting and automation
Web programming, sometimes. Ruby on Rails
Simplified APIs for nonexperts
Gluing C APIs together
Prototyping network protocols
Web application testing
Telephony applications
JRuby: First, the Pluses
Breathing new life into tired old Java APIs
Gluing together Java libraries
Rapid prototyping and experimentation
Enterprise application integration
Web programming but with the Java platform
Swing or SWT GUI development
And on the Downside...
I don't recommend you use either JRuby or Ruby for
Large data crunching
Image manipulation
Heavy math or computation
New language development
E-mail processing
Server protocols
Enterprise deployments
Interested enough? read the complete article from CIO magazine-