Maybe I'm missing something--and that's entirely possible--but I'm not seeing the gerund here.
Isn't "Diseases causing jaundice" a noun phrase with the participial phrase "causing jaundice" as a restrictive modifier?
It's a perfectly acceptable construction; the question here is whether it's preferable to "Diseases that cause jaundice."
I didn't see anything in the Wikipedia article to suggest that a gerund can be used as anything other than a noun (Causing jaundice is bad), even if it is used in the place of an infinitive (I love playing soccer/I love to play soccer).
My apologies if I'm misreading things, but I was confused by your post.
I looked it up, and every example of a restrictive modifier I can find follows
that or (for non-restrictive)
which. Perhaps you can direct me to your source?
Gerunds
are the present participle in English, aren't they? I've heard it called
gerund-participle before, so I assumed they were.
I still think it's operating as an incorrectly used present participle, and similar constructions that I make seem unduly awkward.
That is, [Subject] [Present Participle] [Noun] [Verb]
Cats dancing the mambo puke.
Cats that dance the mambo puke.
The meaning I derive from the first sentence, whether it is grammatically sound or not, is different from the second sentence. I don't
think the first sentence is grammatically sound, though -- mostly because I can't interpret the second item as anything but the present participle.
Let me know if you find or have a good source on those terms you mentioned, though. I'm always looking to learn something new.