A DMF is to smooth out the variations in torque produced by the individual cylinders firing in order to give a smoother engine.
Because of the second mass that can oscillate inside the first, a DMF works better than a solid flywheel of similar mass, and as good as a much heavier solid flywheel. This means you get the free revving performance of a light flywheel, but the damping effect you need on a high torque, 4 cylinder engine (read most modern diesels), where the power strokes don't overlap. Lots of driving around pushing the engine hard at low revs requires a lot of work from the DMF and it'll wear out sooner. When I had my old remapped TDCi Mondeo, if you booted it from 1000-1600rpm, it felt like the engine was trying to tear itself to pieces. It was less harsh before the map, but the effect was still there. At higher revs (above 1750-2000) the effect was barely noticeable.
The problem with some of the Ford flywheels I've read, is that the springs which allow a part of the DMF to oscillate, wear out against the housing, and dump iron filings into other parts of the engine. Specifically onto the starter motor, and difficulty starting the car can usually be a sign that the DMF is on its way out.