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So, I just downloaded iTerm2. I am using zsh in both the apps. iTerm seems to be faster than Terminal.

What things matter when you have a wrapper application around a shell? I want to use iTerm but I don't know why it would be better?

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up vote 3 down vote accepted

iTerm2's list of features look pretty nice, but if you don't use any of them it won't make a difference for you. A faster term isn't anything to complain about either.

I think the most valuable thing for me would be the 256 colors for vim and perhaps a few other things that take advantage of having 256 colors.

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note that you can change Terminal to xTerm 256 under Preferences > Settings > Advanced - Declare Terminal As > xterm-256 Color –  dstarh Sep 11 '12 at 2:55
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