I can't imagine trying to support a Rails environment without allowing
shell access. At the least, you have svn and capistrano. Those are so
ingrained in the Rails community that you would be hard-pressed to
satisfy a RoR developer's needs without them. But then there are the
myriad custom setups that Rails developers use - custom gems, vendor/
rails symlinking, alternate server configurations, etc.
The best environments I've found are VPS type of setups; let the user
do whatever they want on their slice and provide the tools and support
to make the server management part of it easier. You certainly don't
need to offer it across the board - just to the folks that request it.
Or outsource that service: EngineYard, Slicehost, Railsmachine, etc.
all offer varying levels of this service.
Chas Grundy