All the pollution criteria manufacturers have to meet keeps getting worse year by year. Diesels are great, because they can be made to run on anything. But the new diesels come from the factory, touchy if you give them the wrong stuff.
The EGR's are getting absolutely horrible in clogging up intakes. Just take a look inside your "average" TDi. I'm sure Mercedes would have a much worse problem if they fed the E320 CDI the same fuel we feed our diesels at truck stops.
California keeps tightening it's restrictions, and its getting to the point that I don't think MB diesels will ever be sold in that state;
too many greedy Americans wanting SUV's that get 8 mpg, and are over 250 inches long. As long as people want to keep wasting money, there will be no market for diesels.
Of course I don't trust an all-aluminum diesel for 200K miles. After all, the S400CDI has electronic fuel injection, twin turbochargers with variable-nozzle turbine control, and the fuel load cannot be adjusted by a DIY. It has to be turned up by an aftermarket chipmaker. The cars are already maxxed out, and another advancement on the fuel will put even more stress on the engine. I'll stick with the OLD oil-burners thank you very much!
If I wanted this much complication, I would just buy an S600 bi-turbo!
MB is even getting rid of the venerable Cummins.