I use it all the time during worship music. Examples:
- to go from 4 to 5 I can play the b5 dim. Sounds quite strong and churchy, but if you do it nicely it can sound sweet.
- to go from 5 to min6 I can play the b6 dim (similar thing, the b6 dim is a bit less harsh than the b5dim)
- to go from 1 to min2 you can play a 1->b7dim->6dom7->min2
- etc.
Also, note that the dom7b9 chord is a diminished chord in disguise. Take D7b9, you can play it as DA/CEbF#A. So your LH is playing a D shell, and your RH is playing a Cdim.
In general, I use a lot the resolution you get by lowering one of the tones of the diminished chord, which takes you to a dom7 chord (diverse379 posted something about that a few weeks ago)
Let me know if you want me to break down one of the examples above.
Peace