Like others have pointed out, you'll probably not get much traction with this project due to the way you've decided to package everything.
One immediate problem I see is that you don't have version set in your Gemfile. Down the road, when you run "bundle install" it's just going to pull the latest versions and most definitely break at some point.
Also, it looks like you just moved to rails 3.2... Your assets were moved into the asset pipeline, but still exist in the public folder.
Finally, you have no tests. No serious developer is going to use ANY project that's not well tested.
Reality is, Rails already has very mature projects using generators to accomplish what you are tying to do. Generators allow you to give your users options when initially setting up their application. Check out Daniel Kehoe's "RailsApps" project here:
http://railsapps.github.com/
Kehoe's project is a phenomenal example of how to do this well.
Building a starter app is a great way to get familiar with Rails. Which may be why there are quite a few. Maintaining a starter app is more difficult (because of frequent changes to Rails and popular gems). Which may be why the Rails roadway is littered with the carcasses of abandoned starter apps (remember Caboose, circa 2006?). The best are those (like Brian Cardarella's https://github.com/dockyard/sail_plan) that are maintained to support ongoing development by an organization.
Thanks for the kind words about the RailsApps project http://railsapps.github.com/. It thrives because of the active contributions from this enthusiastic community. BTW, I'll be announcing the newest release very soon, a Rails prelaunch app for startups http://railsapps.github.com/rails-prelaunch-signup/ (it's not quite ready for "Show HN").
One immediate problem I see is that you don't have version set in your Gemfile. Down the road, when you run "bundle install" it's just going to pull the latest versions and most definitely break at some point.
Also, it looks like you just moved to rails 3.2... Your assets were moved into the asset pipeline, but still exist in the public folder.
Finally, you have no tests. No serious developer is going to use ANY project that's not well tested.
Reality is, Rails already has very mature projects using generators to accomplish what you are tying to do. Generators allow you to give your users options when initially setting up their application. Check out Daniel Kehoe's "RailsApps" project here: http://railsapps.github.com/
Kehoe's project is a phenomenal example of how to do this well.
Good luck!