Yes, DCALGOL is still around and actively used. It is a superset of the standard Extended
ALGOL, and originally exposed some special APIs and data types for talking to the Datacom
Processor front-end. Those APIs are still used, although the "front end" is now
TCP/IP.
The language has since been extended with numerous other APIs for use primarily by
system-programmer types. There is also a DMALGOL compiler primarily used internally with
the DBMS, DMSII. All three ALGOL variants have been compiled from the same source code
since sometime in the '70s.
DCALGOL would have been no different than ALGOL for dealing with tapes, and I'm
surprised you found it harder to do with the MCP than with OS/360 EXCP I/O. Depending on
the block and tape label formats, you may have had to do your own deblocking, and possibly
read the tape as unlabeled, but the MCP I/O Logical I/O subsystem was quite rich even in
1975. You had to understand how the file attribute settings worked when dealing with
non-native tape formats, however -- I've seen that trip a lot of people up. As an
alternative, a variant of Logical I/O called Direct I/O was available, which is user-mode
asynchronous I/O that reads and writes raw blocks. It's basically a thin wrapper
around the MCP's internal Physical I/O mechanism.
I know this is water long over the dam, but I'd be interested in hearing what kinds of
issues you encountered, and if possible, a reference to the DEC formats you were trying to
read.