Articles in the London Times might also explain the loss of interest in Hybrid Diesels.
http://driving.timesonline.co.uk/tol...cle3552994.ece
The 520d is 30% more expensive than the Prius and is rated within 85% of the fuel economy. Not to mention their test showed the diesel besting the Prius.
I have rented several diesels on vacations to Europe. Most were vans (Fiats!!), but the only BMW was a 530td back in 2002. We observed ~35MPG (US) driving it 1400 miles. FWIW, that was in Ireland which doesn't have much in terms of highways. So that was mostly backroad driving by US standards.