There are a lot of reasons why Diesel works in other parts of the world when it doesn't work here so well. The good news is, things are changing. The big three reasons (in my opinion) are:
1) The US has allowed high-sulfur diesel fuel for far too long. That changed in the last six months or so. High S diesel causes catalytic converters to fail prematurely and promotes high levels of particulates in the exhaust. Europe has had low-sulfur diesel for quite some time, so they have not had to worry about this so much. But now, with the US coming on board, it might be more popular to drive diesels. However, refining low-sulfur diesel costs extra, so you pay a bit more for this version of fuel.
2) The US has allowed low cetane number diesel for a long time. Cetane is almost the same as an octane rating for gasoline. Low cetane limits the geometrical design of a diesel engine because there is no spark-timing adjustments like can be made in a gasoline engine.
3) The big (poor) image of diesels in the US dates back to the '70's when GM tried to take an off-the-shelf Oldsmobile gasoline V8 and convert it to diesel. This doesn't work so well, and the "tainted image" has survived to this day. Though, more people are starting to like diesels.
This article is dear to me because I work in this industry & drive BMWs. I will be sure it gets to the right people in my office. Thanks for the heads up.