Since ancient times our species has always looked toward the sky. For that reason I find it hard to believe we will cease our attempts to build ever higher. However, we may do both. In any case, this is a philosophical discussion which is not the concern of this thread. If you wish to pursue it, you are welcome to open a separate thread wherever it is appropriate, and post a link here.
Now, for the promised calculations. But first, a few properties of diamond that will be needed:
density [http://en.wikipedia.org/wiki/Diamond" ]:
d = 3.5 gr/cc = 3500 kg/m^3
compressive strength [http://link.aip.org/link/?JAPIAU/50/2763/1" ]:
Sc = 4.1 Mbars = 4.1e11 Pa
young modulus [http://en.wikipedia.org/wiki/Young%27s_modulus" ]:
E = ~1000 GPa = ~1.0e12 Pa
Treating the skyscraper simplistically as a single solid diamond column, we get (Pf = load to failure):
Pf*A = m*g = d*V*g = d*h*A*g
h = Pf/(d*g) = Sc/(d*g)
h = 4.1e11 Pa / (3500 kg/m^3 * 9.8 m/s^2) = 11,953,352 m = ~12000 km.
Indeed seems almost unlimited... Of course, in reality, the structural skeleton would have to carry more than it's own weight, so if we assume that the skeleton is say 5% of the total weight, this reduces the maximum limit to about 600 km. Still a lot, given that 100 km is considered outer space.
Now on to buckling. From [http://en.wikipedia.org/wiki/Buckling" ]:
h = { 2.5 * E * r^2 / (d*g) }^1/3
where r is the radius of a solid round column of the given material. Substituting for diamond, we get:
r = 50 m ==> h = ~5.7 km
r = 100 m ==> h = ~9.0 km
r = 500 m ==> h = ~26.3 km
r = 1000 m ==> h = ~41.8 km
r = 5000 m ==> h = ~122.1 km
Clearly, this is a much more limiting factor. However, as much of the building is air, the density may actually be lower, which would increase this limit. Using a conical shape rather than a cylindrical one would raise the limit further, and probably would also be more stable.
I've also found that there may be more suitable materials, since diamond is rather fragile. These include multi-crystal diamond (as opposed to single-crystal), http://en.wikipedia.org/wiki/Aggregated_diamond_nanorods" . They seem to have similar strength and hardness, but not as much technical data on them.
Now, how do I estimate the wind load limits? Oh, and I haven't factored in compression of the building under it's own weight - that would reduce the height somewhat...