Older 2D accelerators had hardware support for beam-avoiding blits that allowed for single-buffered compositing. You could still see unsynchronized blits between distinct buffers, though. We could easily build 2D accelerators that work like this today, and they would use less power than GPUs.
Terminal use at this level of focus, is inseperable from thinking. You do not think to compose a command nor contemplate to move your fingers to type and execute, it just happens.
Therefore I think latency is also severely important at the terminal level.
That's not all the reason. More pixels pushed would only increase latency if the CPU/memory/etc wasn't faster than the older computers.
My conclusion is that if being able to re-render the content consistently in under one frame time is feasible, it's a win over layers. Fortunately, this is possible if you're willing to write fast code to render on the GPU.
There's a lot more complexity to this based on whether compositor latency is optional. Generally if you go fullscreen you can bypass the compositor. This is feasible for games but much less so for terminals and editors. I think that in some cases on Windows a swapchain can be promoted to a hardware overlay, and there you also get the opportunity to save one frame of latency. I think we'll see more of this in the future.
I'll write about this in more detail (with measurements) soon.