If the school has a good reputation & NCLEX pass rates (>95%) and seems to be a good fit for you, I encourage you to consider it.
I'm a 2005 diploma grad. Diploma programs are still going strong in my area - there are 8 within 50 miles of me (along w/multiple ADN & BSN programs). My class included a few students straight out of high school, a 50+ former engineer, and just about every conceivable type in between. I am currently researching BSN programs and will start with approx. 66 credits - on par with where an ADN grad would start.
The largest academic hospital system in my area advertises many nursing positions "BSN preferred" ... but also maintains 2 diploma programs within its system from which it hires & promotes nurses.
Good luck to you.