Absolutely, but you still have the issue that a minor wording change can cause an entire paragraph to be marked as changed if your editor re-wraps the paragraph

Absolutely, but you still have the issue that a minor wording change can cause an entire paragraph to be marked as changed if your editor re-wraps the paragraph. Or, if the editor doesn't rewrap the paragraph, then they slowly get more and more ragged over time, making it annoying to read through. A diff tool that understands paragraphs is an essential tool for this project.