Notebook diffs are not a mirage. The #vscode team have done it.

Some things I learned.... 👇
2/ For now you'll need the Insiders version of VS Code...you can get that here: https://code.visualstudio.com/insiders/ 
Download Visual Studio Code Insiders

For early adopters, you can get the latest release of VS Code each day with the Insiders Build. Available on Mac, Linux and Windows.

https://code.visualstudio.com/insiders/
3/ It also shows you a diff of the metadata which you can collapse.
4/ Markdown Cells work just like code.
5/ One thing to be aware of. If you add a cell in the middle of your notebook git will compare it to the cell that was at the same spot pre-commit like so:
6/ End of thread. Great work #vscode team!
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