The Terminal team have a path forward to implement strong performance improvements based on techniques like those Casey described, and are working on those improvements now, I'm told.
Microsoft haters will continue to say all kinds of stuff no matter what Microsoft does, so Microsoft isn't doing this to appease anyone; it's just performance work that they didn't understand was as easily reached as it is, and they built the Terminal in wrong ways the first time around. Anyway, it's being fixed.
I've never worked at Microsoft but I've worked with a lot of MS employees throughout my career and I wish I could convey just how much the goals of the individual employees line up with people like us. The developers at Microsoft are people like us. Extremely and intentionally caustic feedback on Microsoft stuff does nothing but give those employees good reason to stop working on the projects they love, but which also get the most attention, like Terminal. This necessarily produces a worse outcome for the project.
I wish I could make the extremely vocal and vitriolic people understand that their vitriol is counterproductive in the extreme, and makes everything worse.