LINQ is new and has its place. LINQ is not invented to replace stored procedure.
Here I will focus on some performance myths & CONS, just for "LINQ to SQL", of course I might be totally wrong ;-)
(1)People say LINQ statment can "cache" in SQL server, so it doesn't lose performance. Partially true. "LINQ to SQL" actually is the runtime translating LINQ syntax to TSQL statment. So from the performance perspective,a hard coded ADO.NET SQL statement has no difference than LINQ.
(2)Given an example, a customer service UI has a "account transfer" function. this function itself might update 10 DB tables and return some messages in one shot. With LINQ, you have to build a set of statements and send them as one batch to SQL server. the performance of this translated LINQ->TSQL batch can hardly match stored procedure. Reason? because you can tweak the smallest unit of the statement in Stored procedue by using the built-in SQL profiler and execution plan tool, you can not do this in LINQ.
The point is, when talking single DB table and small set of data CRUD, LINQ is as fast as SP. But for much more complicated logic, stored procedure is more performance tweakable.
(3)"LINQ to SQL" easily makes newbies to introduce performance hogs. Any senior TSQL guy can tell you when not to use CURSOR (Basically you should not use CURSOR in TSQL in most cases). With LINQ and the charming "foreach" loop with query, It's so easy for a newbie to write such code:
foreach(Customer c in query)
{
c.Country = "Wonder Land";
}
ctx.SubmitChanges();
You can see this easy decent code is so attractive. But under the hood, .NET runtime just translate this to an update batch. If there are only 500 lines, this is 500 line TSQL batch; If there are million lines, this is a hit. Of course, experienced user won't use this way to do this job, but the point is, it's so easy to fall in this way.