Also, we were spending a very large amount of time waiting for merges to complete. Minutes. Lots of them. Git is lightning fast, and we spend a lot less cycles waiting (or context switching).
http://whygitisbetterthanx.com/
I would say the primary "hype" factor of git is because of local commits and all the infrastructure/features around them. Better server-side merges is just a nice bonus.
* For finding what commit introduced a bug, by binary search. Flag a revision as the last known good commit, then bisect will switch to a one in-between, wait for you to test and mark it as good or bad, then repeat. Better yet, just provide a test suite and it will classify the revision automatically.
It's somewhat comparable to incremental programming with a REPL, rather than a compile-link-test cycle. Sure, you only get feedback on your code "slightly faster", but that makes a tremendous difference.
Git is hyped pretty hard (software hipsters seem to be gaga over it, probably in part because of gasp Linus), but if you ignore all that, it is a pretty good version control system.