Man, lots of misinformation here that seems to get passed down like gospel.
The Cad V864 was actually a great engine...just a 368 with valve deactivation solenoids. Torque peak at 1400 RPM. Dead reliable EFI. The ECU was up to the task, but customers complained about vibration, especially during the 6 cyl transition. Snip 1 wire and you were running on 8 cylinders full-time. I think people confuse this with the other early 80's Cad engine that was a fiasco, the 82-85 HT4100. I've had several, and rather like them, but they require actual routine maintenance the likes of which Americans were, shall we say, unaccustomed to with their cast iron big blocks. I'd take an 84/85 anyday.
The diesel 350 was not simply a converted gas 350, as is often told. It shares many similarities so that the same machining and tooling equipment could be shared, but that's about it. Where GM screwed up was the low numerical gearing which made the cars even slower, and pinching pennies on injector pumps and WIF equipment, which were added back in after the initial waves of failures arrived (mostly after the DX block upgrades). And let's not forget about the head-bolts.
Of course this didn't address the other inherent diesel issues..like fuel gelling, sooty, smelly exhaust, maintaining a pair of batteries, and nightly block heater plug-in. All of that, plus a rod through the side of the block of our '81 Olds put my father off GM for a few years.