In the process of learning Rails, I read about how we could combine it with some front-end MV* JavaScript frameworks — such as Backbone.js, Angular.js, or Ember.js — to impr
A regular Rails app will use the rails views (erb or haml) to render pages directly. That is to say, it will process the data AND render this data in views, answering directly the client request with a HTML page.
A Rails API will just process your action, and assume someone else is doing the job of rendering the view for the client. Therefore, a Rails API is expected to return data in an appropriate format, like JSON, XML, or just a JS piece of code to execute. It is then the job of frontend frameworks like AngularJS to receive, parse, and do something with the data (like update some HTML, etc.)
In a nutshell,
Now, it's not a black or white answer I'm giving. You can totally have a Rails app mainly built as a Web app, but with some API actions that give more responsiveness to some pages. An exemple of this, is to have an autocomplete form, that is pulling the data via AJAX calls.