Decoupling cap is across pins 1 and 8 and according to the "friendly" data sheet:To ensure these oscillator frequency tolerances, VDD and VSS must be capacitively decoupled as close to the
device as possible. 0.1 μF and 0.01 μF values in parallel are recommended.

Diode on pin 1, I think, needs to go. If you want to put it in series with the 10kish resistor pulling pin 4 high that would be fine. It is used to protect the power supply from the programming voltage applied to GPIO.3 during ICSP. If you're not going with ICSP you don't need the diode. Just the 10kish pulling GPIO.3 high.