Feature request: option to hide/minimize diff output for Edit tool

Feature Request

Add an option to hide or minimize the diff output shown when the Edit tool modifies files.

Current Behavior

When using "defaultMode": "acceptEdits", edits are auto-accepted but the full red/green diff is still displayed in the terminal. For users who trust Claude's edits and want a cleaner output, the verbose diff display can be distracting.

Desired Behavior

A setting (e.g., in settings.json) to control diff display verbosity:

{
  "output": {
    "showDiffs": "none"  // "full" | "summary" | "none"
  }
}

Or a simpler toggle:

{
  "showDiffs": false
}

Use Case

When working on larger tasks with many file edits, the diff output takes up significant terminal space and makes it harder to follow Claude's reasoning and conversation flow. Users who already use acceptEdits mode have opted into trusting edits — giving them the option to hide diffs would improve the experience.

Alternatives Considered

• acceptEdits mode — already used, but still shows full diffs
• --print mode — non-interactive, not suitable for normal usage