Why do you want you coding agents to be in a terminal? A terminal is missing latex rendering, inline images, a browser showing what the agent is clicking on, being able to view a spreadsheet and then select a region to reference in the conversation, clickable links when it references a specific line number with mouse-over previews, and interactive inline visualisations. A coding agent missing any of those is a significantly worse experience, yet people are for some reason willing to give up all of them to have their coding agents run in a terminal. It's not even like you get a familiar environment to work in, nothing that you set up in your terminal carries over into your agent or IDE.

Terminals have had inline images for a long time at this point

Exactly.

We need this terminal TUI nonsense trend to completely die.

Stop using TUIs! They are garbage.

Honestly, the GUI is more intuitive and everyone can use it.