Having the two different contexts for logic, code and SPs makes things a thousand times harder to debug and maintain, making the cost of anything skyrocket.
ORMs are indeed awesome, but the solution for problems like this is not to take ORM out of the way, is to work with it to make it work better.
In my experience, most problems that DBAs would like to use SPs for can be easily solved by refactoring/merging SQL calls and proper caching of objects during a request or session, two things that an ORM really help you with.
Putting all logic in DB also provides natural separation of concerns. UI in one place, business logic in another.
Java may not be the best language for some things, and that's why you use DSLs, but moving that to the place you store the data is probably the worst thing you can do 99% of the time.
Business logic as far as possible must be expressed in declarative way.
Java have very poor facilities for declarative programming.
SQL (not PL/SQL) on other side - is pure declarative language. It's already powerful DSL if you master it.
And yes, I agree with you, that writing logic in PL/SQL (as in imperative language) is equally terrible as writing it in Java.
SQL is a DSL to deal with sets of data. Unless the application you're writing is a database management app, you're pretty much doing it really wrong, I'm sorry to tell you that.
What's wrong with this?
Can you imagine process of billing campaign?
Than try it in Hibernated database and in raw SQL.
Pure SQL will be thousands times faster.
ORMs are good only for smth like Django Admin