How is this different from the dirty checking that Angular does in its ModelView update cycle?
The Angular model doesn't preserve referential transparency and therefore is inherently mutable. You mutate the existing model to track changes. What if your data source is immutable data or a new data structure every time (such as a JSON response)?
Dirty checking and Object.observe does not work on closure scope state.
These two things are very limiting to functional patterns obviously.
Additionally, when your model complexity grows, it becomes increasingly expensive to do dirty tracking. However, if you only do diffing on the visual tree, like React, then it doesn't grow as much since the amount of data you're able to show on the screen at any given point is limited by UIs. Pete's link above covers more of the pref benefits.
The difference is that React constrains the operations a user can do (i.e. we only give them the DOM node if they explicitly ask for it and only let them manipulate it at certain times) so we eliminate the operations that cause the DOM to be slow.
If the DOM were to implement this it'd have to break backwards compatibility.