Yes, the Olds diesels were real bad until 1981. Then, as part of law-suit settlement, GM came out with an improved DX-block 350 diesel. The V-6 version of the same 350 was also improved and I assume that's what is in the Olds you're looking at. Same bore and stroke as the 350 with two cylinders shaved off. The injection pump however, was not updated until 1985. If the pump is original - it's reached it's normal lifespan - but it's very likely it was already repaired and updated.
Many of those rigs went to the car-crusher in my area with very little to no resale value. Now, there seems to be a bit of "revisionism" because of people wanting diesels to burn waste deep-fryer oil. If you are buying it simply because you want something cheap to drive - just keep in mind that most mechanics don't know how to work on it. And, even good mechanics are still often clueless when working on the injectors, injection pump, glow plug system, etc. If you are good with diesels yourself - that's a different story.
As far as economics go?? I just sold my 92 year-old mother's 87 Cavalier for $200. Rust-free, 67K original miles, with a four-cylinder gas engine. It got a steady 32 MPG on highway trips. Just a cheap little ugly car I could hardly give away. That Olds diesel if running right can probably get a best of 33-35 MPG on highway runs. With the price of diesel versus gas (today $4.49 versus $3.37), the Cavalier is cheaper to drive. With the cost of repairs and maintenance, the Cavalier is again . . . cheaper.
My point being - if economy is the only thing you have in mind - quite often an older gas-engine car is cheaper overall - if you get a good deal. I know that in my area, good older 2WD cars bring next to nothing. I already mentioned my mom's Cavalier. We also had an 89 Plymouth Sundance sitting here getting eaten by mice. Southern car, not rust, 55K miles on it and it always got better then 30 MPG on the highway. We just gave up on 2WD cars where I live (on top of a mountain) and wound up selling it for $250 - which was the best offer we could get.
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