No no no. At least in my experience with silkies. Here is what I believe to be true- while DE may extend the amount of time needed between treatments and is a good adjunct to a chemical treatment, it does not have enough contact with all of the mites/lice to kill them. If you notice an infestation, it is probably bad enough to merit immediate treatment with something like Ivermectin (used in many, many animals and has a high margin of safety) or permethrin, which is also fairly safe. I still use sevin dust occasionally, as part of a rotation, but noting the state of CA's opinion, I have reduced the usage. If using a powder, always wear a mask. THIS APPLIES TO DE. DE causes damage in the lungs when inhaled, and it can cause permanent non-reparable harm to the alveoli. In this way, one might argue it is no safer than some of the less potent chemical treatments out there.
So, wear proper personal protective equipment, and treat your birds when you notice lice. I treat EVERYONE in the pen at the same time, because if one has it, others do too or have the potential to pick up mites/lice from the bedding. You can't just treat the bird, I also change the bedding and spray the bare area (and wood perches and walls) with permethrin. I use my garden tank sprayer to do this (I actually have a dedicated tank, but used tanks can be used if you at least triple rinse with clean fresh water).
So, wear proper personal protective equipment, and treat your birds when you notice lice. I treat EVERYONE in the pen at the same time, because if one has it, others do too or have the potential to pick up mites/lice from the bedding. You can't just treat the bird, I also change the bedding and spray the bare area (and wood perches and walls) with permethrin. I use my garden tank sprayer to do this (I actually have a dedicated tank, but used tanks can be used if you at least triple rinse with clean fresh water).