Disclaimer: I have one day less of experience with Terraform as Sam.
I assume this would also handle asset compilations for those who are not using importmaps?
Yes! Rails applications will be able to create more instances of themselves 
! This will be great for getting us closer to “Scale to Zero”.
I’m curious how the production rails console UX would work with this configuration?
I’m a fan of keeping as many “unnecessary files” off of peoples machines as possible when they get started, then making it possible and obvious to bring them back when the higher-level abstractions start leaking. That requires a lot of thought around the failure modes so that super-clear error messaging can be displayed to users. TBH it probably doesn’t deserve much discussion at this point since the steps prior have to be proven out, and if they are, its still a lot of benefit.
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Do you have example configuration files (or a project) folks could look at to see what the Rails Terraform file looks like that you put together?