1) People systematically underestimate the possibility of creating collisions that still do something "interesting", like being polyglots (files that can be interpreted in multiple formats, executable or otherwise). See PoC||GTFO, specifically anything by Ange Albertini, for examples; grep
https://github.com/angea/pocorgtfo/blob/master/README.md for "MD5". I specifically recommend this writeup:
https://github.com/angea/pocorgtfo/blob/master/writeups/19/R... .
1bis) You can use an existing collision to create new collisions. People seem to think you need to generate all the work again from scratch; this is not true. See PoC||GTFO for proof by example.
1cis) The files do not need to be gigantic. See PoC||GTFO for proof by example.
2) You can do the collision in advance, and publish the malicious version later. What it accomplishes is that the concept of "this Git hash unambiguously specifies a revision" no longer works, and one of them can be malicious.
3) The standard should be "obviously safe beyond a reasonable doubt", not "not obviously unsafe to a non-expert". By the latter standard, pretty much any random encryption construction is fine. (The examples I gave use MD5, not SHA-1, but that's a matter of degrees.)
4) SHA-256 was published years before git first was.