Honestly, I'd rather have a stone which was formed over geologic ages in the bowels of the Earth than one which was formed over the last month in a garage in Hoboken.
But I'd also prefer not to subsidise genocide, civil war or De Beers. And I'm cheap.
I can see spending extra on a real diamond for something special, but not for something run-of-the-mill.
The thing is, how many of the traditional uses for jewelry-grade diamonds fall into the category of 'run-of-the-mill'? I think the engagement-ring business is probably secure for a long time. Earrings and other small jewelry? Probably not so much. The sort of things given for important anniversaries and occasions? Probably decently secure.