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Responsive web design is the approach where your website (ie. your Drupal theme) is designed in such a way that it alters its design and layout to accommodate viewing on different devices. For example, the design may include a large background image when viewed on a full size computer, but that image is dropped, it responds, when viewing it on a tablet device or smartphone.
Woodstock Tea Shop has just been converted from a static website to a content management website with full e-commerce through Ubercart running on Drupal. This was a very rewarding project - working with a very motivated client with a existing customer base.
We were able to keep the general design concept and convert it, with improvements, to a Drupal theme. Most of the work was in developing the e-commerce portion of the website and importing existing products. That's a lot of tea!
There's a neat article here about the power of the Drupal system in term of creating a good-looking website. It all depends on the skill of the developer. There are al sorts of websites showcased including media, entertainment, news, special interest, and... Nissan Russia? Yep. Update: the link is broken, but the screenshot is still good.