They do wear out, However I am not yet experiencing it. As well as I hear a lot about soft steel wrapping theories, but did not see it in my case. May be because softest steel I had is INFI 58HRC
It is really hard to say "Do dianond sones wear out", different manufacturers have different technology and different quality, some has polycrystallite some monocrystallite ... It is like asking does the knives dulls fast.
I uses DMT, I noticed that at first they are pretty rough but afte one or two knives they became smoother and continue to keep it from that time till now.
Oldest diamond I used - Sharpmaker triangulars, they looks bold especially on the corners, but continue to do the job somehow.
So I think if you use good brand then you should not really worry about it.
Thanks, Vassili.