Image files get into your diff, as shown by the lines with --- and +++, but they are included as whole files in the patch - this is partially explained by how to intelligently display changes in binary data, such as images in text-only format - if you will not want to use pages with hexadecimal differences (for example, fc -b a.gif b.gif ).
So, they tell you that the files have been changed, and you decide how you would like to compare them - for image files, one of the best comparisons of significant differences is the human eye - you would not expect a version control system to be able to tell you: "This there was a picture of bald people frowning, but now it's a pretty redhead fan smiling, isn't it?
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