Agreed. It's a lot better today in 2012. The OOP side of PHP is fantastic. Most programmers are afraid of change and do not want to leave their comfort zone. They don't have the interest (or time) to learn something new. This is why they continue to exclusively use the procedural side of PHP. They will dabble in OOP PHP, and insist it is overkill, and return to procedural programming. This is because they only "dabble."
Today, PHP is a lot better. Now we can write code that is Java-esque. Ruby, I'm sure, is also a good and fully featured programming language, but I think it's going to remain a minority language for two reasons: PHP already has a strong foothold, and because Ruby's syntax tends to look foreign to people accustomed to C-style syntax.