- higher road tax for a diesel, in some countries 200% more than a gasoline car of the same weight - extra requirements such as factory installed particle filters on diesel exhausts - extra tax penalties on diesel fuel
Europeans care about clean air very much, and most European cities I've been to compare favourably with the American cities of similar size that I've been to. (Detroit, Los Angeles, New York vs say Paris, Madrid, Amsterdam and Berlin).
In former eastblock countries the situation is worse though.
As for the rest of your arguments, you should test drive a BMW 5 series diesel and we'll talk about power, handling and more of those items you mentioned.
And let's not even get started on reliability, diesels are in a completely different ball park when it comes to that. Here a diesel car that has 200k on the clock counts as 'just broken in', the same chassis with a petrol engine would count as being at 60..70% of its economic lifespan.