Looks very nice and fun, and potentially very useful. I was going to say I'd prefer a gradient effect to emulate motion blur, but stepping through the video I see you've already implemented something like that.

However, when making large moves, it seems a bit disorienting and the gradient effect seems very subtle in the video. Perhaps make the effect depend on distance, like actual motion blur would?

I was also thinking about having a color shift when moving up vs moving down, not sure about that one but certainly something I'd play with.

I think this is something that is quite actively being explored in the Ghostty community. And Tattoy automatically benefits from that because it supports the very same cursor shaders. You could check out the Ghostty Discord if you're interested. And of course you can experiment with your own cursor shaders, they follow the same syntax as Shader Toy: https://tattoy.sh/docs/shaders