It's however clearly not in the "70s hardware portion" of iTerm that this issue arises. Also not in the features we've come to expect of the most bare bones terminal emulators since, like Unicode support, scrollback buffers and font rendering, or even the somewhat gratuitous features like escape sequences for RGB colors, setting the window title or sixel rendering.

This is very clearly one of the kitchen sink features, and playing the devil's advocate I should say that it reflects poorly on the kitchen sink design ethos.