PIL is a good library, use it. ImageMagic (what RMagick wraps) is a very heavy library that should be avoided if possible. This is useful for local image processing, say, for a batch photo editor, but too inefficient for the ordinary image manipulation tasks for the Internet.
EDIT: In response to a question, PIL supports drawing vector shapes. He can draw polygons, curves, lines, fills and text. I used it in a project to create rounded alpha angles for PNG images on the fly over the Internet. It essentially has most of the features of GDI + (on Windows) or GTK (on Gnome on Linux).
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