Fact: Innovator can be used only on SQL Server.
Does this mean I am ok writing database level code in stored procedures? What is your recomnendation?
Can I add these to a package for distribution?
1) You are right. Right now Innovator can be used only with SQL Server.
2) There is ItemType SQL (you may find a definition in Innovator\Imports\com\aras\innovator\core\ItemTypes\sql.xml in your installation). The ItemType was designed to provide an Innovator UI to work with stored procedures.
3) There are instances of that type defined in com.aras.innovator.core package (check Innovator\Imports\com\aras\innovator\core\SQL\table_constraint_switch.xml in your Innovator installation).Or better login into your Innovator as admin, find SQL ItemType in main TOC and check a list of stored procedures defined there.
So, there is ItemType "SQL". The instances of that ItemType are part of some core and solutions packages. You are not the first who do this :) .
You may create instances of type SQL and add them to a package.