Check out this Apple stackexchange question
https://apple.stackexchange.com/questions/25143/what-is-the-difference-between-iterm2-and- terminal
I have seen many programmers use iTerm2 instead of the default terminal on the Mac. But what is the difference between these two housing terminals on the earth? To me, they are the same, except for the different colors, I don’t see any difference.
Before the release of Lion, iTerm2 had many features, and now it is finally matched on the terminal. Plus more consistent full screen (Lion) support.
Check out this Apple stackexchange question
https://apple.stackexchange.com/questions/25143/what-is-the-difference-between-iterm2-and- terminal