As an infosec engineer, this is a bit disingenuous. From a statistical perspective, you can pretty much assume that it's impossible to create colliding SHA-1 hashes.
In the intervening years we've discovered security flaws in SHA-1 that allow attackers to create collisions under certain circumstances. That's not great, and now we have ways to migrate repositories to SHA-256 hashes (although it's not yet the default).
But this decision wasn't "sneaky". Cryptographers everywhere routinely build systems under the assumption that hash collisions can't happen, because that's an explicit design goal of hash functions. If we ever find a way that this doesn't hold true, the answer isn't to design the system around the possibility of a collision, it's to switch to a better hash.
How long is it going to take Git to follow?
What is the exact scenario in which a hash collision would be dangerous? (Like, you give some random person push access to your repository and... I'm really getting lost here... they override some commit with a different commit with the same hash? And that's somehow worse than them just creating a new commit with a different hash, which you would notice for sure? And the only reason you won't notice their Evil Change is because they sneaked it in inside a hash collision?)
I have actually searched for collisions by hashing several tens of millions of files with various hashes.
With shorter hashes I have seen collisions, but even with an 128-bit good hash there were no collisions, much less with an 160-bit hash.
Unless you hash many billions of things, the chances of SHA-1 collisions are negligible.
Which doesn't mean it's currently risky, I'm not sure how you'd turn a collision into an attack without leaning on external systems (like code review that approves by SHA, and allows you to push later). But if MD5's history is any clue, that will not be true in the long run.
The time to begin moving to a new algorithm was several years ago, when those collisions were demonstrated. Git is unambiguously lagging behind basic security practices here, though that's likely currently fine. The question is for how long that will remain true, and that's something that can only be answered after it has already become unsafe.
Or if I'm wrong about the timestamp being part of the computed checksum: add a space to your commit message. Very simple.
The malicious failure modes... I don't know. No doubt something is possible, particularly when you account for common surrounding-system usage patterns.