Petr Baudis [off-list ref] writes:
the object databases supports it, but the index file does not. But yes,
it should be supported, I think.
I think if this is done correctly "read-tree -m -u" two-tree
switch could even remove directories that existed in the old
tree but not in the new tree that has become empty.
On the other hand, although I haven't started looking, adding
this to index file might involve a major surgery. Practically
everybody expects it is does not have an directory entry. This
includes reading trees, merging two or more stages, finding
directory/file conflicts, etc. etc...