Back In The Day (1977), my then-employer and I decided to get into the console biz. I used an Intersil 8038 chip for the desk oscillator. It was a very new part, but performed quite well if you followed the app notes with added trimmer parts.
That chip was a function generator with square, triangle, and sine outputs. The latter was indeed created with a "diode bender" circuit. Distortion wasn't ultra low (around 0.5% when carefully trimmed IIRC) but was Plenty Good Enough for a "line up" generator.
The main advantage was super flat frequency response over the adjustment range and ultra-fast settling time when adjusting frequency.
FWIW, Jay McKnight (RIP, owner of the MRL calibration tapes company) built his own custom function generator to create the test tones. Jay wasn't concerned about the "slight" amount of THD but was most concerned about flat signal levels when changing frequencies.
I think the XR2206 was a newer chip.
Bri