Pro web services, con database logic:
- If your database is shared by others your app will now be coupled both at the data and logical layers if you put the logic in the database. That's usually a bad thing.
- I would be concerned about load on the database server. If your relational database is getting hammered by queries and calculations you won't have the possibility to scale it as easily as you would if the middle tier is doing calculations.
Pro database logic, con web services:
- If the database is wholly owned by your app, perhaps putting the logic in it is an acceptable choice.
- I don't worry as much about the fear of switching databases, because that happens more rarely than middle tier changes. Middleware fashions come and go, but the data is the crown jewel of any business.
- Web services have their downside, too. Translating XML to objects and back is a waste of CPU cycles. In-memory calls are orders of magnitude faster than network calls. A single roundtrip to your "simple" service today might be 200 ms, but start adding those up and pretty soon your SLA will be gone.
Don't give in to dogma. Consider the pros and cons of both and make a rational decision based on your app's particular situation. Both you and your co-worker sound like you've make it a black or white emotional decision. Remember: the outcome doesn't reflect on you as a person. You'll find out about what it says about you as a designer after it's in production.