RE: etherless model diesel? Seems doable!
The F2C guys run 10% oil in their 2.5CC team race diesels too. That is the low limit as they pay to play at that point. Engine wear is an issue. The guys that can't afford to pay run minimum 12% oil.
10% oil in a diesel is equivalent to 4-5% in glow fuel based on fuel/air ratios. And that already takes into account the 1/3rd less volume of oil diesels already typically run at.
I think you're right, kerosene is pretty good. Diesel, might possibly be a bit better.
Greg