With the rise of too many electron term.js terminals, It would be great to have a solid featureful terminal made the sublime way !!
The problem with terminal emulators is rather that they adhere to a very old standard and adding features (like kitty does) is hard to get them used by applications because other emulators don’t implement them. A Sublime Terminal won’t solve this.
Also note that most of the functionality you experience while in your terminal is from your shell, which provides the entire interactive part of it.