Rails never had 'steam'. (I supose you mean something else than that digi-distro-channel by Valve)
Rails was and is a fad - plain and simple.
Every haphazard PHP project runs circles around it - for the simple fact that deploying PHP is dead simple, whereas with Rails it's a major PITA. Rails was discovered and hijacked/promoted by the Java community - and while they were all happy and gleeful about the lightweight convention-over-configuration approach they didn't know until then - the Rails & Ruby community bloated Rails beyond repair big-time-Java-style with libs, extensions, mandatory deployment systems that only a very small minority really needs, etc. Rails ran into walls in the real world and the abysmal arrogance of its community scared n00bs away.
The truth is, nobody needs rails. PHP and its big frameworks are faster and easyer to develop for, both PHPs and Pythons communities are way more n00by friendly and for people who need something big, easy and scalable there's projects like Plone (Python) or Typo3 Neos (PHP) for massive non-trivial installments, each with hundreds of active developers to back them.
The only thing that Rails had going for it was a website that didn't look like shit - back in a time when most FOSS websites mostly *did* look like shit - and the brand-new concept of screencasts to show of scaffolding and code-generation. That has changed thankfully, throughout the FOSS community. Scaffolding - definitely not a first with Rails - is now well know as a concept and commonplace. And the FOSS projects are finally aware that marketing, including websites that don't suck, is important. That's the overall improvement that Rails brought along.
But right now Rails as a FW is way to bloated, unwieldy and buggy to be of any use for a web-project beyond enthusiasts fiddling with it. I have yet to get a Rails environment running on my laptop for local development. With PHP its download MAMP, XAMPP or "apt-get install mod-php" and start progging.
So, yeah, no steam, only hot air.
And, yes, from what I can tell, the hypes been over since about 2 years.
My 2 cents.