Are there any "smart"/context-aware diff/merge tools?

Question

So many times when you do a diff of two versions of a code file, the tool completely screws up understanding what's changed... you maybe move a block of code inside an extra level of braces or add an extra ...} else if {... and suddenly it gets all out of sync.

So I wondered if any context-aware tools exist which actually try to understand the content and make smarter decisions, rather than doing a generic diff?

More usefully, can one plug such tools into VCS like git/SVN?

Answer 1

• SemanticMerge for C# and Java sources
• DiffDog is XML-aware differ|merger