Yep, it builds HTML on the server side and sends it to the browser through normal get requests. Instead of constructing HTML in a mix of JS + HTML (JSX) you typically write a mix of Ruby + HTML called ERB.
Doesn't Ruby also have an HTML-over-websocket library that Basecamp built for Hey and released open source? (at least a year or two ago they said they would release it) This would be similar to Elixir's LiveView I think.
Yep, it's like every other MVC or server side framework. You can still send client side JS for interactivity, and these days there are small jquery-like micro frameworks like petite-vue, alpinejs, stimulus, etc. that are made to sprinkle in interactions where necessary. If you want the smooth SPA-like experience there are systems like hotwire or htmx which effectively hide all the page reloading.