I'd argue that it's not that great a representation for code, which should be diff'd syntactically.
Re:Why Microsoft Word must die
by lallysingh on Monday October 14, 2013 @06:21AM
(#6546380)
You have the same problem with software.
It is a horrible representation for stuff where edits may consist of both typo fixes, and separate wording changes in a single sentence - where you might want to accept change to one word and reject change to another word, despite that they came from a single "commit" to a single line.
For collaborative text editing both word's track changes and google docs features are far superior to git.