I would mine those diamonds, take a minute to realize how long it took to find these, then get depressed at the amount of time that I have spent on minecraft, then install toomanyitems in an attempt to make up for all that time lost, then after a week, take a minute to realize how much time I have spent playing minecraft with no worries of losing resources, then get depressed again, then come to the minecraft forums posting on a topic asking what you would do with 4 diamonds.
I prefer spelunking.
And believe me, you will run into a lot of mobs that way.
A diamond sword will save me from being killed a lot, as it kills mobs a whole lot faster.
That means they can't attack me, thus not kill me.
I always have masses of iron anyway, so I can just use that for pickaxes.
Apart from being a bit faster, a diamond pickaxe offers no real advantages to iron pickaxes.
The durability is a bit higher, but there is enough iron around anyway.
I also really don't need obsidian right at the start.
So yea, I prefer a diamond sword.
Don't have time to write out a fully detailed explanation of my opinion as to why a diamond pick > diamond sword soo.......
I'd make a diamond pick and save the final diamond. I usually have enough iron to make several iron shovels instead of a diamond one.
Or, I'd make a diamond sword and save the other two. Then go hunting for a village with obsidian in the chest.
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Sword and armor is more important then a pickaxe on the servers I play on. Whats the use of having flashy gear if someone can just kill you and take it? Iron is common enough and can mine everything but obsidian.
Hmm, I know what I WOULD DO with 4 diamonds on a SMP server :3
1. I would make a diamond sword.
2. I would get a bunch of lava n' water to make a portal mold
3. I'd light the portal and make a blaze spawner exp. farm
4. I'd level up a bunch, head back
5. I'd find 2 more diamonds to make a diamond pick and enchanting table.
6. I'd use the diamond pick to mine 2 obsidian (for enchanting table)
7. I'll make an enchanting table with a bunch of bookshelfs.
8. I'd try to get a level 50 sword
9: (Optional); I'd hunt for more diamonds to make diamond armor
9: I'd use iron to make iron armor