After bundle update IRuby.display IRuby.html "...." still works, but a warning is displayed.
I fixed it by replacing 'MIME::TYPE.new(mime)to MIME::TYPES[mime].first` in lib/iruby/display.rb#160
BUT: MIME::TYPE.new('text/html).ascii? --> true
AND: MIME::TYPES['text/html].first.ascii? ---> false
edit:
after further consideration,I added "text/html" to FORCE_TEXT_TYPES.
This seems to be a quick&dirty walkaround.