I've been looking at the EF lately and while I've still not settled on how it can be tested (given the lack of persistence agnosticism), I do feel that MS has received enough stick from the community that this will be a feature of v2.

The following article by John Papa provides some good ideas as to how one would use EF as part of an n-tier architecture - http://msdn.microsoft.com/en-us/magazine/cc700340.aspx