From what I understand, LO only knows a subset of the SVG standard. For instance, embedded-bitmap are not supported at all (tried with 3 different such SVGs, all of them displayed fine in Inkscape and Xara9). There might be other primitives non-supported at the moment, I don't know.

The ODT provided by mwenz looks fine on my version of LO (up-to-date, linux version), and I have no problem either with the included SVG.

I guess I'll have to wait a few more months before I can use SVG in my documents :/

Thanks guys, I appreciate your feedback !