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