a closer look (past the radiation aspect) will show that the dust itself is extremely toxic without radiation.....not chemical/biologic class toxicity, but quite toxic in ways similar to other heavy metals.
you DO NOT want to be a driver or shotgun on a lowboy in a convoy of lowboys lugging dust-laden Iraqi tanks destroyed with DU-tipped projectiles......trust me! (or look into it further for yourself)
I've heard about that which you mentioned, regarding the DU dust itself being much more dangerous than the low levels of radiation it puts off.
However, it must be noted that DU is about 90% denser than lead, so even the dust settles very quickly and is not a threat unless it is stirred up.
But I agree with you...I would not want to be the guy on clean up duty!