That's odd, bearing in mind that you can't use Linq to SQL against Oracle yet ;-) but in any case, this is a non-sequitur. If "something" is wrong with the SQL in the beta, that doesn't lead directly to coding your own SPs. The two aren't mutually exclusive- you can even create SPs right there on the design surface if you must. I'll paraphrase - some in the Oracle community feel that Linq is largely a fad. I don't fully agree with that, but one of the things they've been critical of (which I share at this point) is the sql code that linq to sql generates.
I can see linq to sql being important for certain types of internal applications, and it'll certainly be welcomed by certain cross-sections of developers. But for those who have been writing stored procs, I really don't believe they'll be in a mad rush to start using linq to sql - they're more likely to make use out of other aspects of Orcas, like lambda expressions, linq to objects, etc.