I've got a 2002 VW Golf with the TDI and it's a blast. There are flaws, but most are related to things like EGR and CCV, power windows, and mass airflow sensors rather than the fact that it's a diesel. This thing gets 50 mpg give or take 5 depending on driving style and conditions. In 2 years, I've managed to clock 75,000 miles and I've replaced the MAF and the window regulators and that's about it. I change the air filter every oil change and use Mobil Delvac 1 (very expensive oil), but change at the normal service 10,000 mile intervals. My only regret will be in about 5,000 miles when I'm due for the timing belt change. Requires lots of specialized tools and is a pain in the butt to get to, so I'll leave that to a mechanic who has time on his hands rather than doing it myself like I usually do.
Also have a Ford pickup with 6.0L diesel.
I'm hopelessly hooked on diesel and it was the first absolute requirment on my recent tractor purchase. Diesels burn lots of different fuels (biodiesel, jet fuel, cooking oil, and funny thing diesel too) which makes them really economical in terms of fuel. If they're built right (all engine lower end) and taken care of, they'll last for ages. The only drawback is that similar repairs between diesel and gasser are generally more expensive in the diesel. You just can't lose compression with a diesel and still run, but then again most manufacturers are using superb coatings on cylinders/sleeves and super rings now too.
Economy per unit volume of fuel is far better than gasoline. Per unit weight, they are almost identical.
My VW exhaust smells like propane engine exhaust when I'm burning old #2 and smells like candle wax when I burn biodiesel. The Ford is another story. It stinks on #2 (different smell than a semi or tractor though) but is tolerable on biodiesel.
Not sure why tractor diesel smell should be an issue. Wife just needs to stay away from it. You're not running it in the house are you?