Let me know what you think. 

A few things I did here:

* Removed redundant info at the top. All the points were repeated below, except for the bit about dev files—of which I think it would be cool to create a best practices section on rails app structure and include that there
* Reorganized a bit and created new headers. "Protocol" was a bit ambiguous to me so I thought of "Feature Workflow." And then I gave a few more headers.
* Also added a few more details

Let me know what you think. I have some other thoughts  too but I thought I'd start with this.