Just that the prompt automatically goes on a new line makes iTerm2 so nice though. As well as the built in timing of commands, jump to previous prompt, double click selects matching parentheses, etc. it's those little details.
If you have a command that doesn't print a new line, the prompt normally ends up on the same line as the output of the last command. iTerm can "fix" this.
See this is where I would rather have my terminal obey the program rather than imposing its own behavior. IMO a good terminal should be extremely minimal, and anything extra should be opt-in.
iTerm is amazing when using many spaces because of the hotkey overlay.
Projects and project parts are separated via spaces but I never want to have to find the right terminal for a process, instead I use a single window with animations disabled (to show immediately) and excluded from app switcher via settings so that it will only ever show up when i press alt-space no matter which space I'm on.
Together with tabs and native panes it works just great and requires very little setup
Apple do a great job with the builtin Terminal.app