At first, it seemed annoying, but now I really like that git uses a pager when it has to present something (e.g. a log or a diff) that is longer than your screen. Git even provides a built in option --color to show you a diff with helpful colors. I use this option all the time and made a shortcut dic for it with the following command
git config --global alias.dic "diff --color"
Also possible is to edit your ~/.gitconfig directly so you have something like the following in there:
[alias]
di = diff
dic = diff --colorNow I just do
git dicand I get a nice paged and color highlighted diff.