Neil,
The diode symbol shown is what I would use for a transient suppressor diode. So I assume it's an attempt to show that the device is avalanche rated, and that the diode can play a useful role rather than just being an annoying parasitic component. As I'm sure you're aware the Schottky effect occurs at a metal-semiconductor interface, whereas the datasheet talks about a pn junction diode, which is what you'd expect from a conventional MOSFET structure.
As Neil correctly says, the ratings are normally given at a rather unrealistic 25°C. For those that are curious consider the following. From the datasheet a continuous rated current of 86A and a Rds(on) of 8mohms gives a device dissipation of 59W. Now the 'thermal resistance' junction to ambient is 62°C/W, so the junction will be at 59×62=3658 degrees above ambient. Clearly the magic smoke will have long since gone! If we assume an ambient of 25°C and the maximum junction temperature of 175°C, to dissipate 59W we need a heatsink with a 'thermal resistance' of about 1.4°C/W taking into account the 1.14°C junction to case 'thermal resistance'. For air cooled, no forced flow, that's a pretty big heatsink. It's actually worse than calculated since Rds(on) is strongly temperature dependent and as soon as the device heats up it will dissipate more power and so on (see Fig10 in the datasheet).
The slightly sneaky part of the datasheet is the 86A continuous under maximum ratings. See the little note in brackets afterwards? Silicon limited? In other words that's the limit of the MOSFET conduction channel on the die. The next, lower, specification of 75A is case limited. So the upper limit is taking the case beyond it's rated current, even though the die itself is capable. This is reflected in Fig9 of the datasheet. In practise the device will not immediately fail if you pass more than 75A through it, but the longer term reliability will suffer.
Confusing isn't it! 
Regards,
Andrew