Diffusion models have shown promise in text generation but often struggle with generating long, coherent, and contextually accurate text. Token-level diffusion overlooks word-order dependencies and enforces short output windows, while passage-level diffusion struggles with learning robust representation for long-form text. To address these challenges, we propose Segment-Level Diffusion (SLD), a framework that enhances diffusion-based text generation through text segmentation, robust representation training with adversarial and contrastive learning, and improved latent-space guidance. By segmenting long-form outputs into separate latent representations and decoding them with an autoregressive decoder, SLD simplifies diffusion predictions and improves scalability. Experiments on XSum, ROCStories, DialogSum, and DeliData demonstrate that SLD achieves competitive or superior performance in fluency, coherence, and contextual compatibility across automatic and human evaluation metrics comparing with other diffusion and autoregressive baselines. Ablation studies further validate the effectiveness of our segmentation and representation learning strategies.