The following is my opinion. I am certainly not an expert so take it for what it is worth. There are a lot of people that use DE and are very comfortable with it.
I've read some about DE and have not become that comfortable with it. I imagine it is like a lot of other things. If it is used properly, it is probably a great product but if it is not used properly, it can be harmful. I've looked a little, admittingly not a lot, at the FDA data base on DE. From what I have seen, Diatomaceous Earth is classified as GRAS (Generally Regarded as Safe) for certain uses, actually a lot of uses. It can be used in the packaging of food and is used as part of a filter medium in certain food processing. I'll not list more because I don't know all of them. If you really want to study it, you might google fda then search for diatomaceous earth. Maybe you will have more patience than I do.
I have seen warnings (not in the FDA database) that crystalline silica can cause silicosis and can eventually lead to cancer if it is inhaled Food grade DE contains very low percentages of crysyaline silica. They suggest wearing a dust mask if you are exposed to airborn DE dust. Those warnings were from the internet, not any official source, so I don't know how valid they are. I did see in one of the FDA studies (not sure of the date but it was after 1998) that they were preparing to perform a study to see if ingesting asbestos is harmful to humans. We know that inhaling it is. I mention that, not to cause fear and panic, but to point out that you really need to know what uses have been approved as safe and what the proper safety precations are.
DE has been approved by the FDA as GRAS for certain uses. As long as it is used for those uses with proper precautions, it is generally regarded as safe. I personally don't use it.