I know I'm just a newbie here, but I have a lot of experience with diesels. My father owns and operates an excavating company, so I grew up running and repairing diesels. Even rebuilt a few Macks (237s and a 300 that continues to give us cam trouble) and a IH466.
What I can tell you is that older diesels will start fine with ether. But it has to be applied in moderation. Only enough to start the engine. If the engine revs on ether, a few things can happen: 1) It can run at high rpm with virtually no oil pressure (ie bearing damage) 2) It can easily over rev and tear itself apart. 3) The rings can seize to the sleeves or block due to lack of lube (usually in combination with a staved fuel condition like plugged filters). Worst part is that you don't know if you've given it to much ether until you here it catch and start. If it catches and sounds normal (revs to the throttle control) then no damage has occurred. If it catches and screams beyond any RPM you've seen or heard, call a priest for the last rights. You've just killed it. And the difference between the two is like an extra second or two burst of ether from the can. /forums/images/graemlins/ooo.gif
Also, as mentioned before, never start a diesel with ether when it has an active start aid like glow plugs or grid heaters. Disastrous results will occur.
With all the doom and gloom out of the way, a positive is that we've been starting our older diesels (without glow plugs or grids) for years and years without damage. Some of the old Macks have run every day, started by ether, and have hundreds of thousands of miles, and still run great.