New TDI's are amazing; for example VW Golf's 2 liter TDI has 140hp and 320Nm torque @ 1750rpm, fuel consumption less than 5 liters/ 100km in highway.
For comparison VW Bora's 2 liter gasoline engine has 115hp with 172Nm @3200rpm and consumes 6 liters*100km in highway.
If you compare TDI to VW's 1,8 Turbo (about same price in here) TDI has 10hp less but still 50% more torque and in lower RPM's, what you usually use in everyday driving.
Personally I'm a bit amazed why US manufacturers haven't developed turbo-diesels; in heavier cars you could cut the fuel consumption to half.
For example BMW 530D's 3 liter TDI produces over 200hp and has 500Nm torque and car uses 9,5 liters at city and 6,9 liters average.
For comparison Chrysler's 2,7 liter V-6 has about as much power, half of the torque and consumes 14,7 liters per 100km in city and 10,7 liters average per 100km.
Americans of all people should know how nice it is to have plenty of torque in low RPMs.