Dave you might want to post this to the diesel forum. I don't know how many diesel heads will see it here. I don't know much about this flavor of engine but 200K could be just breaking that engine in. I have one of the old 617 inline 5's which are very rugged and I have read a lot about the 606s in the 1995-99 e class sedans. I know some engines are better than others but all have a good long life if the correct maintenance is done and a little luck.

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My Daily : 96 E-300 Diesel with 195,000 miles
Retired: 92 300D 2.5 T 345K miles and for sale
Retired: 95 E320 157K miles and currently parked with blown engine

Both retired cars are for sale as is my w124 shop inventory