X2 Check the rear suspension. My W124 300D is doing the same behavior. Very touch on steering input and the car feels "shifty". I found there was a big difference in rear toe angle of the wheels between sides which makes sense with this behavior. My car is parked right now so I haven't had time to check it out yet but its something in the rear suspension, I suspect the training arm bushings. Really for the age & miles on mine, all the suspension rubber parts need changed.

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87' 300D, Currently undergoing an OM606 swap/build! SUPERTURBO!!!
03' 2500HD Dmax + goodies!
82' 300SD, parting out!
93' 300TE 4matic, parting out!
83' 240D Project Cheap Drive
89' 300E, parting out!
74' Datsun 510 wagon
88' RX7 10thAE, 13B track car build soon

Skippy~ As for perception: Drive what you like and can afford. Those who don't like it can supply vacuum to one of your components. LOL

If you need parts, I have some!