Per the message to village pump, I think this is a good idea. Will be certainly helpful as the entire chunk of text I inputed can be copied rather than the previous kind where I either have to search deep in the page to find the chunk (the bottom part "My Text") or rather need to copy line by line (diff view). Thanks for the idea.
Topic on Help talk:Paragraph-based Edit Conflict Interface
I agree with Camouflaged Mirage. Edit conflicts are annoying and it's great to see that you are working on a feature that would make it way more practical to resolve them. Keep up the work!