This StackOverflow answer has an image of KDiff3 highlighting intra-line differences. Does someone know of a tool which can show the same (ex, via color) on the command line?
Another way to think of this is wanting to diff each difference in a patch file.
I don't know if this is sufficiently command line for your purpose, but vimdiff can do this (even does colour). See for example the image in this related question.