From what I understand, it's a tooling problem and not a technical issue with Git. By default Git only supports text diffs but that is not a fundamental constraint of the architecture. Actually Git deals with binary blobs and the diffs are a UI porcelain layer. Binary diffs could be added on top with just a SMOP

We've been working for a few years on a VCS that is starting to get adopted by creative studios - called "Oxen"

It's open source: https://github.com/oxen-AI/oxen

Most users are building their own interface on top, but we also have a nice experience in our web ui: https://oxen.ai

Would love people to try it out and give us feedback!