I like your comments and I hope everything will be fine. I am almost sure my seals were the problem and the condition you saw is no surprise when it has been leaking for 100K miles getting worse day after day. Time will prove who's right or wrong!
I forgot to mention that although I did not do a compression test, I did attach a vacuum gage a few months ago and the needle read in the green zone (As far as I remember, it was 15-16 psi).
1993 190E 2.6
Advanced Diesel Systems Test and Research Engineer