That is the 1800's classical explanation of electric charge, which is not consistent with experiments, nor does it line up with magnetism, which is inherently quantum.
1. Even in your classical description, what you just described (following field lines) does not require there to be a gradient. If there is a gradient, yes, the forces will follow it. But there is still a force in a static infinite applied field, and potential energies still change as things move.
2. Diamagnetism is a quantum property, not a classical one. It exists due to the polarity of spins in an electron pair (although frankly, this explanation is weak and magnetism is one of the less understood subjects in physics). Even if a macroscopic field has a gradient, it will look like a static field at the scale of an atom, at which scale diamagnetic forces exist.