Just make a quick script and set that as the tool for extdiff. I'm guessing you're on Windows, but whatever the powershell equivalent to this is:
#!/bin/sh
binary-to-text $1 /tmp/$1.sct
binary-to-text $2 /tmp/$2.sct
diff /tmp/$1.sct /tmp/$2.sct
rm /tmp/$1.sct /tmp/$2.sct
That creates, compares, and then deletes the text versions. You'd want to be careful to not overwrite, deal with multiple concurrent invocations, etc.
Then configure a new command to run your script:
[extdiff]
cmd.mydiff = that_script_above.sh
Then you can do things like:
hg mydiff
Ideally you have only the "source" bonary format in your respository, not the text format, as you shouldn't keep generated items in the repo -- because if you update one but not the other you have an inconsistent state. Generating the comparable text files on demand is a better way to go.