As of now I don’t believe there are any ways to obfuscate or compile Rails applications. This is why most people host the applications instead of installing to client sites.
This has been discussed before… I suggest searching the archives for some really good discussions about this topic.
I've used this several times; it's a great way of packaging a
Windows-based Ruby app into a single EXE file. I've used this
capability as a selling point for getting Ruby into various places
that I've worked.
However, it's not appropriate for "hiding" source code - anyone with
an editor can open the EXE file and find the source without
difficulty.
No it will not "speed up" rails app. ruby2exe doesn't create native
byte code, it merely compresses the files and copies ruby and other
required lib in one package.