here's a short list of things i think we can do in the short to medium term to
make it a first-class terminal:

[ ] blink and blink2 attributes need to be supported
[ ] improve terminal emulation handling. known apps with problems:
      mc
[ ] dnd text (to/from terminal)
[ ] general input mode handling improvements (keypad, other key
    input, etc.)
[ ] selection of themes
[ ] selection of background "wallpapers" (and support them at all -
    doesn't right now - should support regular images, animated gifs,
    and edje files)
[ ] scrollbar (elm scroller that mirrors the term smart size/position
    - gives us fingerscroll - layer on top of term smart, stick
    invisible rect inside to track for scrolling etc.)
[ ] selection mode mirrors entry style for touch displays (handle
    on_hold flags, etc.)
[ ] selection off edge scrolls in that direction (as per selection
    mode too if it gets NEAR an edge)
[ ] selection should become single edje object so it can be styled nicely
[ ] selection should have handles on the start/end so u can drag and
    change its size once there
[ ] improve selection text extraction logic so its reliable

things in future to make it totally kick-butt:

[ ] "tabs" (multiple terminals inside a window) with a nice selector
    that looks like e17's wallpaper2 selector a bit :)
[ ] track child process stats like cwd etc. and when launching a new
    "tab" or shell use the last child process cwd to put the shell
    inot
[ ] track mem and iowait and cpu stats for child procs and their
    children and display them as little overlays in the terminal so u
    know if your "grep -r /" is cpu or io bound and what is eating up
    all your cpu cycles or causing a tonne of hdd interrupts etc. -
    send results of these stats to theme with messages much like
    cpufreq, battery etc. do in e17 so theme can display as bars,
    dials or anything it likes (text, led's etc. too).
[ ] tiling layout within 1 window to lay out multiple terms in a
    flexible split/merge column/row grid setup
[ ] remember tile layouts and be able to restore them and at least as
    much of child processes as the term can manage reasonably reliably
[ ] split it out into a library - maybe just as part of elementary and
    make a terminal widget where you can specify your own read/write
    funcs for the term fd etc. so u can make a custom bit of code that
    uses the terminal widget as if it were stdin/out but just as
    loopback within the app (ie don't exec process - just create pty
    and offer read/write to/from it)
[ ] start supporting some of the crazy escape codes that let you
    inline images into terminals or just create our own extensions and
    then start making replacement "std command" wrappers/replacements
    that are prepended to $PATH that  can do the right thing when u do
    "ls" - i see a list of files and if some are images or documents -
    u see thumbnails too. if u cat a jpeg.. u see it. if u cat a url
    or html file.. up comes an inline web browser, provide nicer
    visual "progessbars" and modified tools like wget that use these
    escapes etc.