I've had some luck using MJPEG streaming with a Raspberry Pi camera. https://github.com/jacksonliam/mjpg-streamer
The feed was pretty choppy, but I'm not sure if it was due to the encoding software, or the slowness of the Pi.
The project seems to be tailored to the Pi camera, but it's based on this project: http://sourceforge.net/projects/mjpg-streamer/
There are a few packages on npm (mjpeg-proxy, mjpeg-consumer) that may be useful, but not sure as I haven't used them personally. Good luck, and thanks for starting this thread!
There's also Locomotive (http://locomotivejs.org/) and CompoundJS (http://compoundjs.com/docs.html) that somewhat mimic Rails in terms of architecture. Derby even leans in that direction. It seems like moving backwards in time, though, to push this type of framework into the Node space. If you want to develop a Rails application, just use Rails.