I think we can agree that diesel is currently the best choice for trucks designed to carry loads greater than 3000 lbs, like the F250 Superduty or Dodge RAM 2500 HD. The OP was asking about diesel in a passenger vehicle. Diesel is losing its economic advantages as a passenger car engine.
There are plenty of diesel passenger cars, SUVs and light trucks sold in foreign markets. I think this is primarily due to government tax policies. In many countries, diesel is not taxed as heavily as gasoline because it's the fuel used by commercial trucks. In addition, governments tend to levy more taxes on vehicles with larger displacement engines. A diesel can produce equivalent torque from a smaller displacement than a conventional gas engine. Smaller engine = lower taxes.
And then there's the fuel economy of a diesel. Most reports I've read say a diesel engine is 15% - 20% more fuel efficient than a gas engine of similar displacement. And since a diesel produces more torque, the engine can have smaller displacement and still provide adequate power. For example, VW uses a 2.5L gas engine as standard in the Jetta, but offers a 2.0L diesel as an alternative. More fuel efficient and smaller displacement add up to a significant MPG advantage.
This situation is changing, however. First, in many countries, diesel prices have risen to parity with gasoline, or higher. This is due to the global demand for diesel, and to extra costs associated with refining ultra-low sulfur diesel for emissions control purposes.
Second, small displacement direct injected turbocharged or supercharged gas engines are catching up to small diesels in torque production and fuel economy. Examples include Ford's EcoBoost and Fiat's MultiAir gas engines. Essentially, the high pressure injection and turbocharging that have been diesel advantages for years are now being applied to gas engines as well.
Third, emissions rules in Europe are about to become as tough as the rules are in North America are, making diesel engines more expensive to manufacture, and reducing diesel fuel economy a bit.
The result is that global manufacturers are turning more and more to gasoline engines for passenger vehicles. Will diesel engines disappear in cars? Not likely, but they are becoming less attractive.