I’m listening to the Hanselminutes Podcast; \"StackOverflow uses ASP.NET MVC - Jeff Atwood and his technical team\". During the course of the Podcast they are speaking about SQL
Some good point make on both sides (as it were) but no-one has made much of the security implication. Wrapping up all DB interaction in SPs means you can lock down the DB so that any interaction with the data can be tightly controlled.
If you think of Encapsulation, you can regard the DB as an object and the SPs as methods and properties that expose the objects functionality to the outside world.
In some larger development environments, UI and Business layer developers aren't allowed near the DB. They specify their requirements and the separate team provides and interface via SPs.
There are some good reasons for not using SPs and some good reasons for only using them - depends on your application and your environment. But rest assured that SPs won't be going anywhere anytime soon.