I've been using gnome-terminal with I-Beam cursor for about a year now,
and I LOVE it!

Advantages:
+ It brings you the concept which you see in every other app, namely that the 
cursor is _between_ two characters, rather than _over_ one. This gives you a 
consistent behavior across the terminal and other graphical apps.
+ Behavior of keys, most notably Delete in pretty much any application, but 
also Ctrl+arrows and similar ones make much more sense this way.
+ Highlighting in text editors becomes a better experience, you'll no longer 
get the boundary off-by-one. E.g. with the joe text editor, when highlighting 
with Ctrl+arrows, the highlighted text is inverted just like the character 
under the cursor (which is hence inverted twice, that is, rendered normally if 
highlighting backwards), which caused me to end the selection at the wrong 
place most of the time.
+ Similarly, when walking in dialog boxes of midnight commander, the cursor 
doesn't interfere with the text's colors, letting you always see the shortcut 
key by its color, regardless of whether the cursor is over that character or 
not.

Disadvantages:
- Harder to find the cursor with the eyes (blinking cursor does help a lot 
though, and you'll get used to it; also I made it wider than the default in 
gtk.css).
- Vim's command mode seems to think of the cursor being over a character, e.g. 
that's what pressing End suggests. So it's misleading in this app. I don't know 
if this behavior can be configured or not, I'm not a vim user.

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https://bugs.launchpad.net/bugs/1276432

Title:
  Cursor shape and cursor blink configuation

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