Does it ever hit terminal velocity? There is no air in front of it, just more fast falling water.
It's well known that water gains velocity until it vaporizes. I assume it vaporizes because some small flow turbulence gets strong enough to atomize it once it reaches enough speed.
Most of our intuition is with columns that have turbulent flow and standing waves (e.g. taps), which affect how quickly the column disperses.
A non-turbulent column of water acts very differently, see https://google.com/search?q=laminar+water+jet
The water faucet puzzle that interested me as a student was after the water had reached the sink and begun to spread out radially from the stream. Have you noticed that there is a circular boundary where the layer of water suddenly changes depth?
I stumbled upon an explanation for this a while ago: https://en.wikipedia.org/wiki/Hydraulic_jump
Separately, when you model surface tension, you get an equation for when a stream breaks up into droplets - https://en.wikipedia.org/wiki/Plateau%E2%80%93Rayleigh_insta...
Something like this: http://3.bp.blogspot.com/-ryzFfMYaEV4/TZist3z0dxI/AAAAAAAAAE...
It turns out to be more complicated than one (or than I) would think at first.