What you're describing is an implementation of a Data Access Layer - it doesn't sound like an example of the Factory Method pattern, nor the Abstract Factory pattern.
Yes, ORMs bridge the gap from objects to relational databases, and can serve as your Data Access Layer. Bear in mind, any ORM you use has certain pros/cons/limitations. Depending on your experience and requirements, writing your own data access layer is sometimes a good idea; don't feel like you HAVE to use a 3rd-party ORM.
Yes, a good data access layer makes it easy to swap out your storage mechanism (different database, XML, flat files, whatever) without changing your business logic, UI, or other code.
Regardless of loose-typed or strong-typed languages, if you're working in an OO language, it will be much easier to write code using data objects (provided by an ORM or homegrown data access layer). I'm sure it's possible to write a system with no data access layer, where your business layer works directly with the database. But it will likely be more challenging to implement and maintain.