A third (fourth?) option worth mentioning here is difftastic[0], which uses "structural" diffing (as opposed to line diffing) for more granular diff highlighting.
A fourth (fifth?) option worth mentioning is patdiff: https://opensource.janestreet.com/patdiff/ From what I remember, it sometimes (35%) made diffs easier to read, usually (60%) made no difference, and rarely (5%) made them harder to read. I used it a few years ago though, so I don't remember specifically what the problem was. The only reason I stopped using it was because I started using magit for git diffs.
I agree that the patience diff algorithm generally produces better results, but you don’t need the patdiff tool for that. You can configure Git’s own diffs to use patience: https://git-scm.com/docs/git-config#Documentation/git-config...
I see that patdiff also provides word-level diffing. You could instead get that feature with `git diff --word-diff` or Delta (https://github.com/dandavison/delta).