Someone could use a diminished chord based on some technical music theory basis.

I guess it depends on the style of music. I use them at times in certain "old school" blues progressions and a few other places. For the type of music that appeals to me, I don't find them often useful. It is the two-chord of any natural minor scale but I don't find I use it very often.

Then again, I am not a very skilled arranger. I do like the sound of fully diminished being used as transitional chords in the spaces between major scale notes. For example, going from C major to C# diminished to D minor as in "I've Got Friends in Low Places"

There have been musicians who like to use them...lol

Here There and Everywhere
Michelle
If I Fell
My Sweet Lord
I Want You (She's So Heavy)
Blue Jay Way
And I Love Her

Even a country guy or two.

I've Got Friends in Low Places



Billy

“Amazing! I’ll be working with Jaco Pastorius, Charlie Parker, Art Tatum, and Buddy Rich, and you’re telling me it’s not that great of a gig?
“Well…” Saint Peter, hesitated, “God’s got this girlfriend who thinks she can sing…”