The version control system git has the nice feature git diff --color-words which shows on a word by word basis the changes, coloring new words green and deleted ones red. The script ansi2html.sh converts a colored xterm output to html. This way you are able to share your diffs with others: hello world example. For $latex \LaTeX$ you may use latexdiff, which highlights the changes in the generated PDF/DVI-output.