This is a little more of a philosophical question, I understand, but what is the benefits of using this over other languages and what is it most used for?
There are many arguments for any language. No language is the best, it's like asking if English is better than French, or Japanese. They are all great in their own right.
I guess Ruby has become widely used because of its simplicity and expressive-ness. But it was not until Ruby on Rails that it suddenly got popularized. It is up to you to choose what fits your needs. Many companies are now using Ruby on Rails extensively, so if you are working for those companies, you just gotta use it.