You sometimes hear of cars getting stuck while driving off-road. You never hear of houses getting stuck like that. Does that mean houses have better mobility than cars? Of course not! You can't get your house stuck in an off-road drive because you can't drive your house at all.
You sometimes get line conflicts in text files when merging Git branches, but that's because Git actually attempt to do line merges for text files. You never get these conflicts with binary files because Git never tries to merge them in the first place.
- Add a line to a JPG image in one branch
- And add another line to a totally different area of the same image in another branch.
- Merge them
Was Git able to produce a JPG with both new lines? No - it simply tells you there is a conflict and expects you to do things manually. If you tried the same thing with text files, Git would have tried to merge them automatically. It can could have failed - but only because it tried.
As Jörg W Mittag mentioned in his answer, you can configure Git to use diff tools for specific file types. If you set your Git to use an image diff tool for JPG files, it may be able to produce a JPG with both new lines - but in some cases it may also fail and require manual conflict resolution, just like with text files. Does this mean that by installing that tool you made Git less useful for JPGs?
BTW: this question is not that meaningful. You don't usually say "I have a Git repository, now I need to find files to version". It's usually the other way around - you have files you need to version, and you need to choose which source control is best for them. So the question is not how Git's handling of binary files compares to it's handling of text files - the question is how Git's handling of binary files compares to the binary files handling of other version control systems.