Most of our cars HAVE burned kerosene. That is the most common winterizing agent for diesel fuel. Most fuel distributors do not use additives like PowerService due to the cost.
Call it kerosene or D1, but it is basically the same thing (actually can be the same thing, as the specs overlap).
No, it will not make your car/truck smoke. That truck you saw was simply not running properly. A diesel will run just fine on kerosene, but it doesn't have the lubrication properties to keep the injection pump and injectors happy. Diesel engines can be made that run fine on pure kerosene, like the motorcycle that is made for the military. It will run on diesel, kero, or jetA. Many old tractors ran on 100% kerosene. I imagine that the injection pump gets its lubrication from engine oil in that type of system.