There is no "should" in engine placement. Most designers allow for the weight of the motors where they want them. This can be midship for typical slant shafts or further aft for pods and v drives or up against the transom for I/Os.
Of course, if one is repowering an existing boat, most likely the new motors need to be close to where the originals were.
So, if the hull is designed for the weight of motors in the stern, then most likely diesels can be placed there, too. Just so long as their weight doesn't exceed the motors being replaced.
I grew up crying on a 53' Huckins with a pair of v drive 671s in the stern. That boat floated right on her lines. All the Island Pilots we built had diesels in the stern with either I/Os or pods. They also sit on their lines.
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Reuben Trane
"Sunshine" - Island Pilot DSe 12m
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