Maybe I'm missing something... is there a benefit to this over a normal terminal/terminal emulator? (eg xterm, mac terminal etc)?

As far as I can tell, putting it in electron would mean that you could embed arbitrary HTML structures inside the terminal (like web page previews or something), but from what I've read, it doesn't look like that's the goal.

I've always wanted a terminal with bloom effects and it seems that Hyper 2 might be able to provide that. But I haven't found a theme that does that, and I haven't wanted it enough to look into that.