I absolutely believe git should use a cryptographically secure hash function.
But you're completely missing my point, which is about Linus's claims that git's use of SHA1 isn't security-critical, but why he's using a cryptographically secure hash function anyway.
There are better cryptographic hash functions (e.g. Blake2) than SHA1 that are even faster. Check out the "results" slide of this slide deck for the cycles per byte table: https://blake2.net/acns/slides.html
The performance difference between SHA1 and SHA256 is less than 50%. Unless hashing is a significant percentage of git, which it isn't, this is an insignificant difference.
http://atodorov.org/blog/2013/02/05/performance-test-md5-sha...
Also, you can easily argue that version control is a security context.