I think people still hear "diesel" and think big, noisy, heavy clunker, with no performance. I don't know when the true "shift" happened, but todays diesels are incredible.
What was the Hp on the Cummins in the Dodge (that Dodge and Diesel guys loved), 160HP? Noisy, etc.
Today, the Big 3 have Diesels that crank out 300+ HP out of the gate, are quieter, and still get high teens for fuel mileage. With a little work, you can make these things scream, and still get decent mileage.
I've got a 06 Duramax, and it does everything I could ask. Gets 18-19MPH on the highway at 70-80MPH and pulls a trailer like nobody's business. If I could put a smaller one in my car, I would.
Perception, perception, perception - that and why in the he!! is diesel more expensive than gasoline???
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