I've used both ActiveRecord and Entity Framework extensively. And while Entity Framework definitely has it's drawbacks, it doesn't get any better than Linq in combination with static compilation for a large and complex code base with a lot of moving parts.
And yes, "don't do that" is all well and good when it comes to the 'right' way to do things in Rails/ActiveRecord, but when DHH himself is driving the callback train at full speed and you take a project over from someone who jumped on the bandwagon and didn't actually know how to properly apply these tools to the code, it's going to be a pretty nasty wreck.
You can be damn sure I'd rather take over and refactor a large, messy C#/Linq/Entity Framework project than a large, messy Rails/ActiveRecord project.
Also I could never get over the fact that Rails developers for some reason treat foreign keys like it's ebola. "It's just not the Rails way" is not a good answer for not using foreign keys.