In my repository, if I type
$ git diff some-file
or
$ git difftool some-file
I get the in-terminal diff displ
It seems that git diff (at least, as of git version 1.7.12.4) will not run anything other than the internal, console-only diff on a file which is in the "both modified" state. git mergetool works on such files, though.
git diff
git
1.7.12.4
git mergetool