Specifically, [itex]P(A | B^{C}) := P(A) - P(A \cap B)[/itex] would still include B in the sample space. Given that B hasn't happen, you don't want B in the sample space.
I know the equations that P(A|B') = P(AnB) / P(B')
But why isn't it P(A) - P(A n B)
In an expression for probability P(S), there are more things involved that the set S. The expression for a probability involves (perhaps implicitly) a particular "probability space". The expressions [itex]P(A|B')[/itex] and [itex]P(A \cap B')[/itex] both refer to the same set. However, they refer to different probability spaces. In the probability space for [itex]P(A|B')[/itex] no events in [itex]A \cap B[/itex] exist. In the probability space for [itex]A \cap B'[/itex] , events in [itex]A \cap B[/itex] may exist and may be assigned nonzero probabilities.
Your reasoning with the Venn diagram doesn't include the information about what sets are in the two different probability spaces.