Where has the scripts folder gone?

Mid Jan DHH committed a change that got rid of that directory, in place of that you should use the rails command.

When you execute rails in your home directory you will see the various options:

Usage: rails COMMAND [ARGS]

The most common rails commands are:
 generate    Generate new code (short-cut alias: "g")
 console     Start the Rails console (short-cut alias: "c")
 server      Start the Rails server (short-cut alias: "s")
 dbconsole   Start a console for the database specified in config/database.yml
             (short-cut alias: "db")

In addition to those, there are:
 application  Generate the Rails application code
 destroy      Undo code generated with "generate"
 benchmarker  See how fast a piece of code runs
 profiler     Get profile information from a piece of code
 plugin       Install a plugin
 runner       Run a piece of code in the application environment