The core strength of Rails 2.0 is better synergies with HTTP, and thus by extension, REST. The individual improvements are too numerous to mention here, but suffice it to say that you can get as deep as you want with HTTP using Rails 2.0, including support for HTTP security and many other capabilities.
Perhaps the greatest weakness of Rails 2.0 is the religious way the Rails team favors REST over SOAP. They essentially discourage people from using SOAP, rather than fleshing out better support for SOAP-based interactions. The choice of REST vs. SOAP should be left to the developer or the architect, not the framework.
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