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I'm a bit curious why people on MacOS don't just use the built-in Terminal.app. It's really good and fast.

It was sort of unloved for a long time which left the opening for something like iTerm to get popular in the first place.

I'd honestly would go back but can't give up the iTerm Hotkey Window (global hotkey, semi transparent terminal quickly slides out from the top of the screen).

it doesn't have true colors for one

This is also why I use kitty instead of terminal.app. I just can't get colors working for vim. Otherwise, its surprisingly fast. Much better than iTerm imo.

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