It's just not quite what I had in mind. But what I wrote is still quite scrappy; that line is missing at least an "in general" to broaden that point out beyond iTerm 2 specifically. I need to slow down a bit more.
I don't really agree with you on the LLM side of the equation, and I am bothered by the idea that this is where we're all headed. But where I think this integration is not ridiculous is in doing this at the GUI level.
There is an argument for saying "why isn't this a utility at the remote (shell) end", but of course from the perspective of OpenAI API calls being added to everything and calling out from the command line, that would be worse, because you'd be installing it everywhere.
So if it belongs anywhere (colour me wholly unconvinced) it definitely belongs somewhere within the terminal client itself.
But as I say, I don't use iTerm 2. I did take this opportunity to look at what iTerm 2 offers, out of fairness to the author, and it is obviously an impressive bit of work. Maybe when I find a need for Python scripting like that I'll come back to it.