I've been thinking a lot about this!

Redoing the work as smaller PRs might help with readability, but then you get the opposite problem: it becomes hard to hold all the PRs in your head at once and keep track of the overall purpose of the change (at least for me).

IMO the real solution is figuring out which subset of changes actually needs human review and focusing attention there. And even then, not necessarily through diffs. For larger agent-generated changes, more useful review artifacts may be things like design decisions or risky areas that were changed.