MDS surge was discussed at length over on Diablo's forum.
Personally the surge had me concerned as it felt to me like the powertrian was taking a pretty good lick when it engaged. I had Diablo backoff on the stiffness of the shifts a bit. It reduced the MDS surge to the point where I'm the only one that notices it. The effect on WOT shifts (especially with the raised shift points) feels to be minimal.
As for fuel mileage, I believe in the MDS feature for whatever it can do to improve mileage, so I have not disable my MDS. I had installed an MDS indicator LED some time ago so I can tell when it is engaged. With experience, I have found what helps to get the MDS to engage, and keep it engaged. It engages easily at speeds as low as 25 MPH, sometimes even in
4-th gear.
I have been keeping fuel price and consumption records continuously for more than two years. Since installing the modified Predator 93 octane CAI tune (with raised shift points and reduced radiator fan on/off temperatures to go along with the 180*F Motorad 4128 t-stat) back in February my fuel mileage has gone up about 1/2 mile-per-gallon. Not all that much, but when I consider that I like to hear the CAI and Blastin' Bob glasspacked resonators, I figure any increase in fuel mileage is a plus.