I've always found the diagrams a tad cumbersome for larger databases.
I find linked database documentation easier to read and see.
Apex SQL Doc does a very good job of this compiling a linked HTML help file of the database where you can follow contraints, keys and so on from parent to child very easily.
There may be others out there but I found this one very easy to use.
Their Edit tool rocks too. (sales pitch over ;)
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by: DanielWilsonPosted on 2009-08-12 at 14:42:08ID: 25083354
Many developers find an ER diagram communicates the relationships between tables far more clearly than a verbal description of the DB.
Is it crucial? Well, not as crucial as a good design in the first place. But if you're going to produce documentation for the benefit of future development, an ER diagram would be one of the more important pieces, assuming the DB is of much complexity at all ... say more than about 5 tables.
Others may disagree, but those are my thoughts :)