It's incredibly helpful to launch a service and ensure it's running, and allow a dev to see it running in action as well. You can also have a one on one situation where a dev might want to show you how to debug a running app or something like that vs explaining where it logs error messages after they occur.

In a pair programming situation, this is very useful.

And yes, one cursor. But you can have multiple terminal sessions open on your local machine, but only be connected to one common session. That defeats the purpose of pair programming though.

You both want to be focusing on the same thing, at the same time.

I recommend tmate.