I've found configuring merge.conflictstyle diff3 without a tool to be superior than tools like kdiff3 and such. This was without any fancy merge conflict rendering. Nowadays some editors will also highlight the changes in a 3-way diff.
The reason no-tool is better is that you don't have to read files in whatever order kdiff3 shows them to you -- they're just files, and you open them.
The reason no-tool is better is that you don't have to read files in whatever order kdiff3 shows them to you -- they're just files, and you open them.