Separating your data access code out of the application logic also allows you to change it much more easily as data conditions change, including on the fly, without an application deployment. That's often extremely useful.
MySpace scale may be at an extreme end of the spectrum, but we had formidable hardware to throw at it too (although x86, so nothing TOO crazy). So I think the ratio of hardware to scale at other sites is comparable, and so I think the same lessons apply. I have no experience working with oracle, but would you say that a 7 node oracle cluster is some pretty serious hardware? I myself really don't know, but it is a question I have :).
EDIT: I'm not discounting your experience, i just want to point out that i've experienced conditions where I think the orm approach would have broken down. If others have had different experiences, the more data points the better, but i think the scale/complexity/cost(hw) ratios play into the debate as well.
EDIT #2: Oh and I forgot to mention that the automated test suite you had is an incredible asset, and no doubt made it easier to discover problems early and deal with them effectively. But you do have to invest resources in creating one, and something like that is no small cost at a start up.