I've been using Dreamhost for my personal sites these past few years and want start hosting ROR or Sinatra sites there. The Dreamhost howto for ROR says it uses Passenger (phusionpassenger.com) for Rails hosting. Is this equivalent to Heroku?
I'm also not entirely clear on what exactly Heroku is for. If an application runs locally, doesn't that mean it will also run on a Web server? What is different that requires a special service such as Heroku?
ETA: I've found and am reading Why do people use Heroku when AWS is present? What distinguishes Heroku from AWS? which answers some of the question but not all. I just need a very basic answer as to why I need this service(s?) for a hobby site.