Going through my pile of 1 million things to read before I die, I came across this presentation by Tekelec with regards to why Diamater and SIP would be used instead of SS7 in LTE and IMS. The slide in the picture above shows the comparison of SS7 and Diamater.
More and more operators are asking for replacement of SS7 with the Diamater interface. The main reason being that it has been adopted by 3GPP and when we move to an all IP network as in case of LTE it makes sense to have Diamater instead of SS7. There is a good description of Diameter on Wikipedia (cant guarantee the accuracy though) here.
You can read more about SIP at the Tekelec blog here.
There is also an interesting Radvision presentation on Slideshare that I have embedded below:
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