Hobo is an open-source Ruby on Rails extension designed to facilitate rapid web application development through features like dynamic AJAX interfaces, customizable themes, and an elegant markup language called DryML. It caters to professional developers, designers, and newcomers by streamlining the prototyping and production processes while maintaining robust functionality, such as user management and CRUD support. Hobo enhances Rails' capabilities without restricting what can be achieved, making it a versatile tool for building sophisticated applications.