<-- recovering diesel head, I've had 6 diesel VWs, from '91 to '12, a Ford 6.0 Powerstroke, and a 91 Mercedes SDL Turbo. The '12 VW TDI is actually being bought back by VW next month
Anyway, yes some stations in the USA do have the diesel pumps in their own island away from the gas pumps. As long as they aren't all high flow rate truck pumps, I preferred this since a gas car wouldn't be blocking the diesel pump while they filled up!
At newer stations all the pumps are generally together.
Regarding the GM 350 diesels, from what I read by 82 they had figured out the issues.... but the problems up to that point, and horrible dealer mechanics had so tarnished the brand that when fuel prices went down in 85 they stopped selling them in 86.
PS: Here's a nice bit of diesel trivia: What's the only automotive engine with no belts and no chains? A: The VW V10 TDI. Everything, including the accessories is gear driven off the back of the motor. The are also
15 fuel pumps on that vehicle. We have one of those too... it's currently parked waiting on replacement camshafts
-J