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For text written in a natural language, it would be great to have a word-based diff instead of the usual line-based one. This prevents confusion with line wrappings, etc. An example of what I mean can be found in Wiki when comparing revisions: http://en.wikipedia.org/w/index.php?title=LaTeX&diff=274474135&oldid=274471077
Something similar is already done with the option (it is on by default) "Highlight individual changes".
This bug hasn't had any activity in quite some time. Maybe the problem got resolved, was a duplicate of something else, or became less pressing for some reason - or maybe it's still relevant but just hasn't been looked at yet. If you have further information on the current state of the bug, please add it. The information can be, for example, that the problem still occurs, that you still want the feature, that more information is needed, or that the bug is (for whatever reason) no longer relevant. If the bug is still relevant, please remove the "stalebug" whiteboard tag.