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SemanticMerge is an existing commercial product that works in a similar fashion. I've found it much nicer to use than text-based diff tools.

https://www.plasticscm.com/semanticmerge/documentation/intro...

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One of the better merge tools but I'd only recommend it if your language of choice is supported. Otherwise, BeyondCompare is just as good.

I like BeyondCompare, as a free option, I really like Meld, it's similar.

It looks like difftastic can support way more languages. I haven't used semantic merge (or even heard about it before this) so idk if its language support is somehow better though.

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