You could... But writing and deploying a diffing tool for every different gsuite application is probably 6 months of work for a whole team... There are so many corner cases.
What will the users do for 6 months waiting for their data to return?
What will the users do for 6 months waiting for their data to return?
For some files (anything encrypted, for example) this may actually be the best you could do.
Dropbox had this behavior ten years ago, so it's kind of inexcusable for Google today to be just mindlessly overwriting.