Managed to implement a new "highlight differences" feature based on this
suggestion, here is how it looks:

-Red highlight + crossed out: Means that part was in the original post and was removed in the edited post.
-Green highlight: Means that part wasn't in the original post and was added in the edited post.
-Neutral: Didn't change between original and edited post.
It's usable but still doesn't look that good because it's extremely hard (or nearly impossible?) to compare the html elements of the edited and undedited post because of the dynamic nature of html, instead it compares the inner text of the html elements. The drawbacks of this is that the end result is an unformated text like shown above.
What do you think? is it worth being released in the next version? If you have suggestions to make it better, please let me know.