Lowering the priority and changing the severity to "Wish".  There are workarounds available, either using spdiags to stay in all sparse matrices, or using diagonal matrice of class double (storage is 8 bytes per entry rather than 1 byte for logical, but since only the N elements of the diagonal are stored I really don't think this is going to be a problem).

And as David B. noted 6 years ago, this would require a hell of a lot of re-working of the diagonal class and all of the operators to support this use case.

Logical matrix multiplication comes up quite a lot.  Of course, I could just convert to a matrix of doubles, but that would be a workaround.

As an example, suppose I have a logical matrix A where each row represents a set (and all sets are unique).  Now suppose I want to remove any set which is a subset of another row (such as when finding all maximal cliques in an undirected graph).

cardinality = sum(A,2);
coincidence = A * A'; %Logical matrix multiplication
subsets = any(coincidence == cardinality, 2); % Using automatic broadcasting with ==
A = A(~subsets,:);

As an example of where logical diagonal matrix multiplication comes in handy, suppose I want to mux the rows from matrices A and B according to a logical column vector s

res = (diag(~s) A) | (diag(s) B);

I think the problem is actually that diag doesn't support logical matrices.  If I break the problem up I can see that the multiplication is between a SPARSE matrix and a FULL matrix and the rules are that the SPARSE matrix is coerced into a full matrix.

x = logical (speye (3))
x =

Compressed Column Sparse (rows = 3, cols = 3, nnz = 3 [33%])

  (1, 1) ->  1
  (2, 2) ->  1
  (3, 3) ->  1

typeinfo (x)
ans = sparse bool matrix

y = diag (logical ([1 1 1]))
y =

   1   0   0
   0   1   0
   0   0   1
typeinfo  (y)
ans = bool matrix
z = x * y
z =

   1   0   0
   0   1   0
   0   0   1
typeinfo (z)
ans = matrix

On the other hand, If I use double values which diag() does support in the special diagonal matrix class then I get the right result.

x = speye (3);
typeinfo (x)
ans = sparse matrix
y = diag ([1 1 1])
typeinfo (y)

Diagonal Matrix

   1   0   0
   0   1   0
   0   0   1

z = x * y;
typeinfo (z)
ans = sparse matrix

I'm going to re-title the report to indicate that logical diagonal matrices are not supported.

Simple test code for this is

typeinfo (diag ([true true true]))

which should return "logical diagonal matrix".