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Diffing relative to the previous version is something I do very often and since CVS | DIFF on the most up-to-date version does nothing except print out a warning we can potentially overload its meaning. An alternative is to explicitly add a shortcut to diff against common targets like "one version back" or "one day back" without going into ADVANCED MODE.
Easy. Assign a shortcut for the "Diff (CVS)" action in the options panel! Worksforme.
I am advocating adding a shortcut to "diff relative to last version" as opposed to simply opening the general diff dialog. To be honest, it doesn't matter as much to me 9 years later because I no longer use the built-in VCS engine. I *would* use it if the UI caught up with that of external tools like TortoiseHg and TortoiseSVN.