I do feed DE, but mostly to help the horses get rid of the protazoa that live in warm standing water around here. Certain times of the year our pasture is covered in an inch or two of water in most places and if it is warm the protazoa thrive and the horses that don't have an immunity to them start looking like crap, DE makes a huge difference for them. I have dewormed my horses with ivermectin after they have been on a cup of DE a day for two months, they poop out bots after the ivermectin so I know for a fact DE does nothing to kill bots.
I used to feed it until I read the fine print that said for humans to use a mask because it was not good for the lungs. I have asthma and then I thought well it wouldn't be good for the horses to breathe it on either.