Straight forward answer to Why is that "it depends" -- it depends on where you're coming from and what problems you're tring to solve. Why I chose may be very different than why somone else chose, and different from why you might choose it.
For people trained on Java, building "small-ish" sites/apps is inefficient compared to Rails. So many Rails people gush about how productive it is. Compared to similar frameworks in reflective, dynamic languages, I would expect Rails tobe about the same (I find it about the same as my own web framework). So the whole "4x and 10x faster" business is very relative to your previous experience. It is quick to develop with when you stick to the core things it was designed for. When you have to deviate from that path, well, then it's about the same as anything else you have to do from scratch.
Rails is batteries included, but some assembly stil required. Rails does have some nice things "in-the-box" such as testing, migrations, integration with rake, your basic MVC system all ready to go, and ActiveRecord. However, there is no built-in tools for user authenication, multi-language interfaces, and if you're building lots of similar apps, Rails isn't very modular (relatively awkward at sharing share code between projects). However, there's quite a few plugins to fill in some of the blanks.
Rails is well-liked by a lot of today's programming pop-icons from the XP/Agile/Pragmatic crowd. This is because Ruby is a lot like their first love SmallTalk, because Rails sought to embody a lot of the XP/pragmatic philosophies right from the start, and because the Ruby and Rails communities are pretty good about teaching good habits (according to the XP/Pragmatic philosophies). So, if XP/agile and the Pragmatic approach to things resonates with you, the you'll find Rails to be very fluid and at one with The Force.
Ruby. Pretty cool language. Though hampered by arcane, old-school command names it's relatively free of syntactic junk which makes for fairly clear reading. I don't get too whipped up about the DSL frenzy that's going on, but good object and variable naming along with Ruby's syntax does seem to make the code brief and readable compared to other languages. I recently had some code done in 6 languages to makes available as SDKs, and Ruby is generally very easy on the eyes.
However, Rails is relatively new, so some spit & polish are still needed in some areas (production deployment is still awkward compared to other systems), but the good news is that there's a lot of energy being put into making Ruby and Rails an equal player on the big stage.
Why should you choose Rails? Well, mostly because it a) does what you need it to do, b) you appreciate the style and philosophies it promotes, c) it is supported by a community of like-minded developers, and d) you can find worthy people to work on projects with/for you using it. If these things are all yes, then they're good reasons for choosing Rails.