That more or less matches what I've heard as well. Not good chemical reactions & the galvinizing flakes off creating gritty contamination.
Actually the diesel dissolves the zinc coating, and it ends up clogging fuel filters and trashing your injectors. I do use a galvanized funnel just to pour the diesel into the tractors, but I would not store diesel in a galvanized tank or can. My new favorites are the NoSpill cans with push button control. I have seen them in red, blue, and yellow.
In california they are snowflakes. Everywhere else but Florida they are zinc flakes. There they are called sink flakes.