My understanding is that git diff algorithms require a file to be segmentable (eg text files are split line-wise) and there is no general segmentation strategy for binary blobs.

But a good segmentation is only good for better compression and nicer diff, git could do byte wise diffs with no issues, so I wonder why doesn't git use customizable segmentation strategies where it calls external tools based on file type (eg a rust thingy for rust file etc, or a PNG thingy for PNG files).

At worst the tool would return either a single segment for the entire file or the byte wise split which would work anyway