Active record is a good option for building simple web applications with server-side MVC but is not well-suited for business logic heavy RESTful web services. The model classes are tightly coupled to the database, making it difficult to separate business logic from the framework. Additionally, active record provides limited support for features like composite keys, auto-dirty checking, and persistence by reachability, hindering the ability to apply domain-driven design patterns or basic object-oriented principles like single responsibility.