Setting to hide code change diffs in terminal output

Feature Request

Add a setting to hide/collapse file edit diffs (line-by-line code changes) in the terminal output by default.

Desired behavior

Only show in the terminal:

• Bash command output
• Errors
• Status messages (e.g. "deployed and live", "file updated")
• Claude's reasoning/logic text

File edit diffs (the line-by-line red/green diff output from Edit/Write tools) should be hidden or collapsed by default, with an option to expand if needed.

Why

When working on larger tasks, the code diffs create significant visual noise in the terminal. Users who trust the edits and review via git diff or their editor don't need to see every line change inline. The current defaultView: "chat" setting helps but doesn't give granular control over specifically hiding diffs while keeping bash output visible.

Proposed setting

Something like:

{
  "hideDiffs": true
}

or

{
  "outputStyle": "minimal"
}

That suppresses the inline diff rendering for Edit/Write tool results while preserving all other output.