It is the stated intention of the line editor and the authors to leave the question of Diedne guilt unanswered in the published material. I believe that they've done a fine job of it.
Yet the topic has generated a good deal of heat here. Specifically Boxer has provided a strong voice for painting the Tremere as vile evildoers. Also Tim among others has brought in powerful arguments demonstrating that the fifth edition texts do not provide a strong case that the accusations of human sacrifice and diablarie were false (watch the double negatives there, they were intentional).
A few statements, by Boxer notably:
and
Cry out for a counter argument.
So with the caveat that this is done in fun I present the argument from quotes that any objective observer would judge the Diedne to be guilty from provided text.
The first quotation is from the core book page 10
The important thing to note here is how the text makes note of how few magi trusted the Diedne without any similar note regarding the Tremere. The Tremere had at one point tried to conquer the order, The Diedne had not. Yet it is the Diedne who are not trusted. An observer would be justified to conclude that the behavior of the Diedne must have been exceptionally suspicious.
Also note that the Diedne are both pagan (not in itself an implication) and based primarily in the Normandy and in the British Tribunals (also not in itself an implication). Yet these two facts together are quire curious. None of the supposed heartland of the Diedne has been even remotely pagan for several hundred years. This necessitates that the House takes Christian, and Jewish children and alters their religion in some way. In the setting of Ars magica can this be seen as anything other than infernal? I'd like you to recall that this is a setting where faith provides magic resistance and miracles are well documented.
Further down on page 10 we have the following:
No one? The Diedne had been a part of the Order since the eighth century and now after over 200 years of association with the other houses no one will publicly come forward and side with them. The records of the schism war were destroyed but I believe the best explanation for this complete absence of support is overwhelming evidence.
From Houses of Hermes: True Lineages p 41
Clearly this was the time for the Diedne to present their evidence if they had it. There is no reason provided anywhere to indicate that the Diedne did not put their best evidence forward at this hearing, and yet they were still denounced. Here's another quote from true lineages, it's from page 57.
The Diedne had their day in court, in a court with more capability to discover the truth than any court that has existed in any non-fictional setting. They were found guilty.
from HoH P 113
These quotes serve to repudiacte any assertion that the Tremere saw this as a vehicle of personal gain. Also on this topic let us remember that at the time of the schism war the Tremere were even more tightly concentrated in the Transylvanian tribunal than they are presently. this means that they had little to gain in terms of vis and land from starting a conflict with the Diedne.
HoH:S P 102
The Diedne did not have only recent problems with the Latin houses. They had continuous problems with other groups throughout their history.Such behavior is entirely consistent with diabolic influence. "From before the founding of the order" is a heck of a long time to hold a grudge. i propose that exceptionally vile deed are the best hypothesis to explain such a strong reaction. Vile deeds are in general consistent with a pervasive diabolic influence.
HoH:S P 10
The Flambeau were so convinced of the of the guilt of House Diedne that they risked their own lives in wizard wars in order to bring evidence to light.
If the Diedne had nothing to hide they could have submitted to investigation. If there were sizable non-corrupt factions within House Diedne they could have used the Quaesitrs to purge their house of its demonic elements as the Tytalus did. Instead House Diedne was using its political might to block investigation of their house. You don't do that if you've nothing to hide.
The code they all swore said "Let us work together as one and grow hale and strong" the Diedne were the antithesis of this. The Diedne also swore "I will not deal with devils". All of the Diedne furthermore swore "I request that if I break this oath, I be cast out of the order. If I am cast out of the order I ask my sodales to find me a slay me that my life not continue in degradation and infamy". On the basis that the entire house had broken their oaths the the schism war was entirely justified.
I'm just learning to touch type and I needed the practice. This took forever.
Have at it! Construct me a counter argument.