My understanding of the Wallas is that it is a "drip pot" type of burner. That is that the fuel drips into the combustion chamber and the heat helps to vaporize it, and then it burns. The draft is forced by the fan, and this helps to prevent back drafts, which can be a problem with drip pot stove burners.
One of the potential problem with diesel, is that it may sit in a tank for an unknown peroid of time--so it is best to obtain it from a dealer who has a high volume. The longer it sits, the more likely there is to be contamination from algae. (generic) We have settled on Kleen Heat because there seems to be less smoke and soot--thus our feeling that there is less likely to be sooting up of the burner. We had a full tank of what appeared to be clean diesel in the tank of the CD 25. After about 8 hours of use the stove began to smoke badly. I poured out the diesel and put in Kleen Heat--and almost immediately the stove began to behave properly. I supsect that the diesel was old, even though it looked fine.
I agree about the smell, but having lived with a number of diesel engine boats, where the smell was almost always present, it does not bother us.
I would think that the lubricrity would be a greater issue with a high pressure pump--such as the injector pump in a truck or marine engine, where the pressure is close to 1000 PSI. I believe that the Wallas, is basically a lift pump--and limited to about 3 foot lift. I don't know enough to know if the rate of flow of the fuel is determined by the temp of the burner, or just the flow rate (speed or pulses) of the pump.
Pensacola is a seasonal market for Kleen Heat and in the Spring the price is reduced. I usually buy enough in the spring for the next year.