I'm not sure binary diffs are the problem - e.g. for storing images or MP3s, binary diffs are usually worse than nothing.
Are there many binaries that people would store in git where this would actually help? I assume most files end up with compression or some other form of randomization between revisions making deduplication futile.
https://xethub.com/blog/benchmarking-the-modern-development-...
Editing the ID3 tag of an MP3 file or changing the rating metadata of an image will give a big advantage to block level deduplication. Only a few such cases are needed to more than compensate for that worse than nothing inefficiencies of binary diffs when there's nothing to deduplicate.