A question: How do you handle disconnected applications if all your business logic is trapped in the database?
In the type of Enterprise application I'm interested in, we have to deal with multiple sites, some of them must be able to function in a disconnected state.
If your business logic is encapsulated in a Domain layer that is simple to incorporate into various application types -say, as a dll- then I can build applications that are aware of the business rules and are able, when necessary, to apply them locally.
In keeping the Domain layer in stored procedures on the database you have to stick with a single type of application that needs a permanent line-of-sight to the database.
It's ok for a certain class of environments, but it certainly doesn't cover the whole spectrum of Enterprise applications.
