Perspective in the rear view mirror:
There were some great diesel HIGH efficiency engines back in the early 80s coming out of Europe.
The 5 cylinder Audi diesel (I owned one-'81 *Audi 5000) is a good example. 40 mpg road milage in a full sized sedan at good+ speeds. Since then, new engines had to be keep being developed by all manufacturers to accommodate all the many various emissions regulation changes. Of course efficiency took a hit.
In the big cities, the stringent emmission regulations/changes likely make sense, but those of us in the rural wide open spaces (low percentage of sales) suffer all the consequences with really none of the benefits.
That's life......
*Rest of the story...
The Audi built drive train (engine, std 5 speed trans, transaxle) was superb. The rest of the car was crap. Go figure. (Audi outsourced heavily then, a lot to GM Europe)
Had the car about 150k mi, I couldn't keep the car around the drivetrain functioning because too many of the misc. (expensive) parts became unavailable, and there were too few in the wrecking yards as part donors.
I had an '80 Audi 5000 diesel. It was a wonderful car. Mine was the year prior to the turbo. Normally asperated. Slow around town and the gears spacing in the 5 spd was a mess. Slow around town but on the road it cruised at 85 getting 45mpg. it started fine in cold weather and the AC made frost inside the car it got so cold. I put 200k on mine. Very comfortable and handled nicely. I did have a huge problem with expensive electrical switchs falling apart and such. I traded it on an '86 Ford Ranger with a turbo diesel. Great motor (I think Mitusbishi made) but the truck was junk. I drove down the street and parts fell off. No support from Ford at all on these trucks. Most dealers didn't even know the diesel existed.
By the mid '80s the small diesel boom was over. GM had tried to make a diesel out of the SBC and it was a dismal failure. It was the nail in the coffin for auto diesels in the US except in light trucks. The one exception was VW. They never gave up and now they make some of the best.