Actually - it would be cool if there was something that allowed you to render markdown atleast.
Also, is this display limitation a function of the OS? In which case, shouldn't Cocoa/GTK or other versions not have this issue and be able to actually embed nicer rendering in there with nice fonts?
It isn't a limitation of the OS, or of Emacs really. There is a build where you can embed GTK widgets inside of Emacs. It just isn't at all standard or, last I checked, well supported (on the level that the usual Emacs distribution is).
This web browser in Emacs is usable inside a terminal, and it displays HTML really nice. Much better than something like elink. Other GUI web browser is not.
Also, is this display limitation a function of the OS? In which case, shouldn't Cocoa/GTK or other versions not have this issue and be able to actually embed nicer rendering in there with nice fonts?