The GM turbo meets the AFR requirements, and its of good quality, just the wrong application. Turn up the fuel and boost and it starts going out of the requirements. It was probably an engineer making calcualtions, with an environmentalist touting the black smoke concern, and a bean counter sourcing turbos. From the computer calibrations for the DS4, it appeared that the designers originally had intended much more for this setup. Where they left traces that fueling was mapped to 96mm^3, but then limited to 80mm^3 and set to about 65mm^3, and boost limited to 22psi, 2.5-bar, but set to 8psi max with a 2-bar MAP. So along the way either engine failures or bean counters rained on their parade. When you look at the first 6.5td, it almost seems like a shade tree job, bore a block and slap on a turbo. The GM development bucks likely went into the heads, although they werent so great either. This was an era where American trucks ruled, but they were getting beat up on small cars, sedans, and luxury cars.
Look what dodge did as well, they went from large 18cm^2 housings to 12cm^2 housings. GM just went even smaller.