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: 
The best way I found is to use named version.
You can set names for each versions and you can compare current named version with previous named version. So the step is

1. Set names to two versions you want to compare with.
2. Turn on "Only show named versions".

Then you can see the difference between specific versions. 

In order to be able to visually see the highlights and strikethroughs, you need to check the *Show Changes* box at the bottom of the right-hand column, then click on the named version you wish to view.
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.