> iTerm2 has been updated for the modern Mac OS X "flat" look and is stunningly beautiful.

It does look very polished! Just two things:

When you choose "No title bar", the rounded corners and drop shadows all disappear so it looks a bit too "sharp".

And it would be really great if you can add an option to specify internal padding, similar to urxvt's internalBorder.

Great work and thanks again!