I unscrewed the bleeder valve and the diaphragm fell right out - no puncturing or violent pushing required.
True, but I think crxgator was asking if the diaphragm can be pulled out the top where the bleed screw attaches, which it cannot, as far as I know.
So why are people taking off the bleeder valve when the block is removed?
If I remember correctly it is in the way of removing the diaphragm.
On one side the little yellow diaphragm is held up against a flange, which you can see here:
So it won't go out that way. And directly on the other side of it is the bleed valve assembly, which protrudes down into the fluid passage.
This is the part I mean:
And here you can see it protruding down into the block. This is with the diaphragm already removed, the flange drilled out, and the bleed valve filed down considerably. But if it where in there, it would be between the flange and the bleed valve. Therefore you have to take the bleed valve out.
The short story is it can only come out one way. It will make more sense when you do it.