It's now just about a year ago that I watched the Race Touareg TDi battle in the sand during the Dakar!

There are diesels and there are diesels. The previous generation diesels (eg 2.4 Toyota) gave 4x4 diesels a (bad)reputation that lingers in some people's minds.
Modern TDs outperform petrol equivalents in just about all areas, bar outright top speed.
eg I drive a TD that develops Yank V8 (petrol) power at economy that rivals 2 litre (petrol engines).
Yesterday from Klerksdorp to East London:
Four adults with their luggage.
Ave driving speed: 99 km/h
Max speed (overtaking): 162 km/h
Trip Economy: 10.45 l/100km
PS. If monster dune driving makes up a major part of your driving, go petrol.