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Here's a few reasons why I love diminished chords and diminished harmony so much. Hopefully there's a few new ways for you to think about and apply diminished chords.

12Tone youtube channel made a great little video about using diminished chords a pivot chords for modulations, check it out:    • Diminished 7th Modulations and the Sw...  

Chapter markers
00:00 - Intro
00:29 - Only 3 chords and 3 Scales!
06:36 - Passing chords and Pivot chords
12:35 - Delayed resolutions and sus chords
13:51 - Use over dominant chords