Another update, based on feedback on the kvm patch:
diff --git a/tools/xm-console-wrapper b/tools/xm-console-wrapper
index e914eea..540a62d 100755
--- a/tools/xm-console-wrapper
+++ b/tools/xm-console-wrapper
@@ -28,6 +28,7 @@ unpause() {
# tradeoff between missing some console output if the node is overloaded and
# making the user wait everytime when the node isn't so busy.
sleep 3
+ # Send \r\n after notice as terminal is in raw mode
printf "Instance $INSTANCE is paused, unpausing\r\n"
xm unpause "$INSTANCE"
}