Everyone seems to do 1.8t conversions in mk3s be different if you can wack a PD in it I would be really intrested to see this type of conversion and it makes sense.I would think in the long run aswell a PD would hold its value better than a more common petrol conversion.
The main problem is the wiring, not very easy to sort also hard to find donor engine / cars hence why it is not a very common conversion.
I don't like diesels and prefer engines that rev which could be another reason.
I agree dervs dont rev as much but I dont think thats a reason why people dont do PD conversions I would say its because the 1.8t is just a easy option and maybe cheaper plus you can buy 1.8t alot less than a more desirable diesel.There will be donor cars out there you just got to keep an eye out im sure a car would come along eventually at a reasonable price,kell wanted a certian engine with low milage and he found it eventually.As for the wiring etc I dont know much about the work involved but dont the Challenge of doing the conversion make it enjoyable and I done it the whole point?I personally think the 1.8t conversion has been done to death in alot of Golfs now and yes its a great affordable conversion but I just wouldnt mind seeing something that doesnt get done that often just my view.Like you dont like diesels Im simlar I dont dislike petrol cars but after owning a diesel I dont think I could go back to a petrol car now 
A7 UFO had a PD in his mk2 and I don't think he was keen on it even after all the work of getting it and running.
it is something different however.