My understanding is that one of the driving forces behind the LQG approach is to maintain diffeomorphism invariance inherent in GR on the way to a quantum theory of gravity. Along the way it's often pointed out that this is incompatible with 'ordinary' QM in that it's formulated on a fixed background 'stage', along with the problem of time.
Sometimes the first part of this seems to imply that you cannot write a diffeomorphism invariant version of a quantum theory. However, would a QM equation (KG or Dirac) in curved spacetime not be invariant at least under spatial diffeomorphisms?
The way I think about that, which I admit may be incorrect, is that the 'physical law' should not depend on the geometry. So if we have an equation that can take any (reasonable) geometry, then is this not satisfied, at least in the spatial case? (I know the problem of time is more deeply rooted)