The Date API has a function called date_diff for comparing two dates but this is not an implementation of hook_diff. I have posted this also on the date module issue queue at http://drupal.org/node/251511. I don't know which module should be changed. It might be better to give a slightly less generic name to the hook.
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Comment #1
gregglesThe other issue is fixed: #251511: Name clash between date_diff and hook_diff
So, given that date changed it's function signature I think it's ok to leave hook_diff as hook_diff. I can't think of a more unique name that is still appropriate.