Question: In the new version of Google Docs is it possible to view/compare revision differences as you used to be able to do to see the changes highlighted.

I know you can view previous versions but what I want is to see the individual changes highlighted by the user that made them.

Answer: 
You can see differences between named and unnamed versions.
Go to File->Version history->See version history
On the right hand side, you'll see the versions. If you click on one of them, you will see above your document, on the right hand side 
[![Total: X edits](https://i.stack.imgur.com/VBuKP.png)](https://i.stack.imgur.com/VBuKP.png)

The total shown is the number of changes between the version you highlight and the previous one shown. There are two arrows to the right of the total for taking you from one change to the next. When only named versions are shown, you see the difference to the previous named version. When both are shown, you can click on the little triangle to the left of a version to show also unnnamed version. In that case you'll see differences between one unnamed version and another.

You can name and "remove name" for versions with the menu to the right of the version name to see differences between further away versions.

All this worked June 4, 2019.
Docs has "Tools -> Compare documents". This can be used. For each (from/to) version, create a new document, and then compare these documents.

This creates 3 documents (two source documents and the comparison result), that you then may want to delete afterwards. But it is possible.