I've been using EBC "Green Stuff" pads on the front wheels of my 94 E320 wagon for about 3 or 4 months now. They produce some dust, but nowhere near as much as OEM pads. Braking seems to be as good or better, and they don't squeal as long as you install them properly (using brake pad paste in the right places). They show very little wear so far, so I am satisfied with their performance. At the same time I put Axxis Metalmaster pads on my wife's 300E and they have also performed very well, with less dust (I think) than the EBCs, and no squeal. The question then becomes which of the two is more rotor friendly and I don't have an answer for that.
Hope this helps
92 300E (Black/Grey interior: wife's car)
94 E320 Wagon (White/Saddle interior, Eibach springs, '96 E420 16 x 7.5 wheels)