I just read this post from the ADO.Net team. Looks like there is going support for entity creation (Entity Data Model - EDM) based on a database schema in the next ADO.Net release.

There is nothing more tedious than manually building entities from a schema. Although there are lots of O/R mapping tools around to do this for you, I haven’t been happy with the freeware applications available. It is great news that this should find its way into Visual Studio and the framework.