Diesel generators do tend to get better fuel economy than gasoline units in gallons per hour for the same rated load, but also tend to have a much more linear output load than spark ignited engine powered generators, so if running at a fraction of full output diesel has advantages, particularly in air cooled models that are less prone to wet stacking. I will give you that there is some cost advantage to Propane if bought in quantity, the exact amount depends on a number of factors including location, however none of that makes up for the fact that after a major storm of other event you are unlikely to be able to get resupplied for considerable amount of time. So what if you have to drive a hundred miles every couple of days to resupply your diesel, at least that means you have power, the food in the freezer stays cold, or the house does not freeze, yes it will cost money, but so would alternatives like evacuating the area and staying in a hotel...
Ike
p.s. as a side note this resupply issue when using a popular and perhaps most generally suggested generator for home back up on this section, the 5KW MEP-002a, you will consume about .57 gallons of diesel per hour at full load (or about .3 gallons per hour at half load), a 55 gallon drum will last you about 100 - 180 hour if ran 24 hours per day depending on load, that can be up to 360 hours at about half load on a pair of 55 gallon drums or in other words about 15 days of continuous power, so a fuel run would be required about every 2 weeks.
p.p.s. to back this up with some relevant numbers, using the commercial cousins to the popular MEP-002a and MEP-003a generator, Onan built the J series generators and engines in both diesel and spark ignited (gasoline) forms, although they shared the same basic generator ends, output ratings did not exactly match, the closest were the 12.5KW rated gasoline powered JC and the 12KW diesel powered DJC.
The 12.5KW gasoline powered JC is rated at 2.1 GPH on gasoline, 200 cu ft per hour on natural gas or 92 cu ft per hour on propane
The 12 KW diesel powered DJC is rated at 1.05 GPH
(these are full load consumption numbers)
sure these are older engine designs, and newer ones may improve economy some, but that is still a big difference (numbers are taken from scans of the original sales lit posted on the smokstak Onan generator board)