What we do need is an easy way to embed xterm inside another window, and control it through some sort of IPC mechanism.
Or maybe we could have a libxterm :-) with the xterm terminal engine.
Then we can write bells-and-whistles such as tabs, and still have a terminal emulator that actually works, instead of the usual utter crap people who like bells-and-whistles too much end up writing when they try their hand at writing GUI consoles and terminal emulators.
I have very little faith that anyone will write a better terminal engine than the one in xterm. Even rxvt does not come close (but it is still vastly superior to certain crap we have out there...).
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