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I use colordiff, and sometimes vimdiff, for some tasks. I also like trac's character-wise diff within lines. A command-line tool for that would be nice, does one exist? It probably wouldn't be hard, the tricky bits are already on CPAN (Algorithm::Diff, Term::ANSIColor).
hidiff was intended to show a file, but with it's differences to another highlighted. I think there's room to use Algorithm::Diff to improve how it does that. I need to work out what diff information to display and how, given the constraint that the "new" file is shown in it's entirety and correctly positioned. (While writing this I thought that flipping interactively from new to old may help, or be useful on it's own)
I also just discovered "less -r" and "less -R", which make less display colordiff output usefully.
In reply to Re^2: hidiff - char highlight diff utility