I'm a big fan of iTerm as a replacement for Terminal.app for developers. It offers a host of productivity boosts. To name a few:
- Named tabs
- Favorite location bookmarks
- Window, font, and background colors per-bookmark
- Transparency levels and blur of the underlying windows
- Middle click copy and paste
- URL launching from any URL recognized text
I've put together a quick screencast to show off a number of these features and how to configure them.
iTerm Developer Tips from Matthew McCullough on Vimeo.