I would like to shed some light on how this issue is progressing.
We have discussed and analyzed it, without underestimating the severity of the problem. Considering the growing interest in the issue raised in PITS, we have decided to implement some solution to allow automated usage of default values defined in the database. Due to the heavy development needed to introduce such functionality, I will be introduced in Q1 2012.
Until then, please accept our apologies for the inconvenience caused. The temporary workaround as described is to set the default values manually in a partial class constructor (not in the auto-generated class, since it might be replaced).
I will post any news that we have on this feature in this thread and in PITS.
the Telerik team