I tried writing one in pure Elisp some time ago, but it was too slow. Maybe I'll give it another shot in C this time, on top of the new dynamic module support.
The built-in terminal emulator is atrocious, both code-quality and feature-wise.
I agree with you as an end user that the features of all terminal emulators available in emacs are atrocious. Have my up vote, and silent support should you decide to really put some time into a better terminal for emacs.
The built-in terminal emulator is atrocious, both code-quality and feature-wise.