When you start seeing the diffs with entities instead of lines, is what interests me, you get much better semantic info.

If you have a language specific parser, you can make a merge algorithm like weave. But the bigger win isn't resolving conflicts git shows you. It's catching the ones git misses entirely. So in those cases weave is much better, and there also other things like confidence-scored conflict classification, you should try it out it improves the agents performance, especially if you are a power user.