I’m not sure; this might work in any decent terminal application, not only in OS X’s. However:
Using Terminal.app it is possible to put status information to the actual title bar and not just to the prompt.
In order to do that, you need to change the PS1 variable in bash to the following model:
PS1='\[\033]0;TITLE\007\]PROMPT'
Where TITLE and PROMPT must be substituted to the actual commands which provide the status information. For example, \w lists the current full path; \W the directory name. You can even execute a command by putting it in backticks. (So you could even put the output of arbitrary commands to the title – or to the prompt.)
Git users (with git’s bash completion installed) might find the following useful. Add this to your .bashrc
export GIT_PS1_SHOWDIRTYSTATE=1
PS1='\[\033]0;`__git_ps1` \w\007\]\h:\W \u\$ '
and the title bar of Terminal.app will show the current git branch (and whether it’s clean or not) followed by the current full path. This gives useful information about where you are only when you need it and does not make the actual prompt overly long.
In case you don’t use git very much and only care about the path in the title bar:
PS1='\[\033]0;\w\007\]\h:\W \u\$ '
openfor everything: URLs, images, documents. I use it everyday. – olt Jul 6 at 14:48open .opens it Finder. It's useful if you want to do something graphical. – ShreevatsaR Jul 26 at 4:40