Note that my own terminal MacTerm (http://www.macterm.net/) also supports most of the iTerm2 features from this post. Though I feel my Full Screen support is nicer: I provide options such as a scroll bar when full-screen, and I do not use Lion's widget so the switch is instantaneous and has proper multi-display support (i.e. you can have a full-screen terminal on two displays if you want to).

I don't have split-panes, though they're on my list. There are a handful of other features I don't have, but also vice-versa. In the end I won't say either app is better, but I definitely think there isn't one terminal everyone will like.