The diff stuff is really only intended on basic things in the first implementation, the addition made to recursive copy didn't really feel the need to support the diff mode.
To be honest, if you have more than one system, --diff gets ugly pretty quick. I've been tempted to cull it at times -- while a great feature that I do appreciate the addition of, it is *quite* involved in the way it works, so there's a bit more than usual maintaince cost to it, and this is one of those things.
It's not really it's fault, but more of a case of there being a LOT of data.
I'm open to improvements, though I will say that we might be a little hesistant about them due to lots of important magic involved. Copy is pretty mission critical.