The latest version of the Entity Framework got me in love, still at good as it is I don't like using entities objects as domain objects for all the obvious headaches, so what I'm doing is translating retrieved entity objects in my services and returning POCOs to whomever consumes the service. Thanks to automapper the translation from pocos to entities and back results in some easily maintainable code inside the services. Where things get hairy is when you add ViewModels to the picture and you end up mapping a viewmodel to the poco in the controller and then mapping the poco to the entity object in the service to be stored in the repository.
Would you consider this an overkill or am I being too nitpicking ?