I enjoy projects that push the limits of what we expect from terminals. However, as an end user, I would be highly annoyed at a terminal with effects like this. My favorite thing about terminals is the minimal cruft from unnecessary peacocking. Every other mode of application has decades of built-up obligation to be flashy or entertaining in the way it presents information. Not terminals, though, that's the last place where less is more.
This was my initial reaction as well, but after some more consideration, I concluded:
1. This isn't for me
2. But some users have completely different expectations/desires
3. There's a place for terminals with features like this alongside standard terminals that remain simple. vi vs. vim vs. neovim come to mind here
3. I could see this being valuable for content creation that features a terminal, where communicating what is happening is more important than the local experience I'd otherwise expect to have while doing daily work
5. This would be even more valuable for narrative/story telling where the goal is to show something that's real while trying to appeal to a broad audience
Not my cup of tea, for the most part, but I can see a place for it.
so much effort is put into making terminals, aesthetic, customizable, and impressive. yet, not enough work is done in fixing the usability limitations of terminals (especially for casual users or beginners) such as: -command/argument discoverability, error forgiveness (being able to roll back a destructive command or detect and warn the user before executing), and general ergonomics