Almost every song George Harrison wrote has a diminished chord in it somewhere.
I do a cover of a Freddie King/Don Nix tune called Same Old Blues. I've changed it a bit, but I use a Diminished 7th as the 4 chord and it sounds way cool in this tune.
I like this ii chord instead of a regular min7b5 (here in a Cmin. ii V i prog ):
notes in the chord: D Ab C G followed by G B F B followed by a full Cmin7 chord.