It's like getting a 7 course meal when all you wanted was a cup of coffee.
If the 7 course meal is the same price as the cup of coffee, what would I pick?
This is about functionality - by putting KingCON in kickstart, tab completion and various other features are there also when booting without startup-sequence, or when booting to other filesystems (floppies, games etc).
Is there any way to have ViNCEd available like this? I think not.
No, there is not, and even if there would, it's not supposed to be a ROM component. It's your friendly shell, not the boot shell which you barely see anyhow. That's not the envisioned use case.
Anyways, there is much more. xterm also does vt420 and has its own extensions, such as the color255. If you look at modern implementations such as iTerm on and others for Linux and BSD etc, that can also output graphics directly to the terminal window.
And xterm has a textronics (sp?) emulation in it. (-: It still doesn't make this a very popular feature. If you want truecolor support in ViNCEd - it's all there, 24 bit colors.
Anyhow, at some point one has to draw a line between "useful" and "useless", and I don't see much use for 256 colors in a console. Colored text - yes, useful for highlighting. More than a handfull of colors? No, not at all. A console is not a paiting program, and neither a plotting program (even though xterm actually is).
It has already been done. MorphOS's terminal MUI class does this.
That's good for them. Though again, if you need a UTF-8 console, you're probably better of with your average Linux or Windows machine. On an Os that does not have UTF fonts, nor a graphics system that supports them, this sounds as useful as having an 8-channel Dolby surround sound stereo in a Beetle.
Let me just shortly counter this by saying "most users do not use ed" 
Likely, it's a terrible editor. Though you asked "why does the system need a terminal emulator", and the answer is "because there was historically need for a terminal". If you would want to re-invent the machine, I wouldn't probably start from BCPL or Tripos either, but that's how it is. Besides, it's not really such a bad choice either given that even modern systems come with a terminal emulation (as in: Windows, Linux and even MacOs).
Yes - but there is a difference between "native terminal" and fully emulating ANSI vt220, vt420, xterm etc.
Actually, it's not really that much of a difference. Emulation of vt220 was quite useful back then, IOW, I did have a use case for that. Unfortunately, there is no working ssh implementation left, so this use case went away. It was neither very hard to add, really.
"Most users" (and this time I include myself) do not really care much about _how_ the console/terminal/shell window is implemented. "Most users" do not even use shell much (though some of us do).
Certainly. Though, I do. It seems silly to push consoles around (which I even do on my Linux machines), but I'm much faster with the keyboard than the mouse. Ten finger typing. Again "I have a use case for the shell".
Tutorial about how to use more advanced features to empower users. Isn't that what software is all about?
Oh, it is, but there is a difference between "helping users" and "spoon feeding". I do my very best to supply answers to every possible question. There is a structured manual, and there is a setup-system with an online-help system, and an installer. That's even much more than you get with most average software. A video - how would you even play this on a 68K system with at most 50Mhz? C'mon, you're asking really a bit much here.
Features wanted by "most users" for the console, easily accessible from a menu..
* iconify
* jump screen
* tabs
* switch to full screen mode and back
That's all there.
* vertical and horisontal split terminal
This is not there. Tabs (not in the sense of tab expansion) would be nice. "Screens" in the sense of the Linux program of the same name are possible (the necessary CSI sequences for that are implemented, IIRC, the 3.9 "more" even uses them).
* prefs to configure profiles with colours, programs to start etc.
That's also there.
And yes - the shell should provide the tab completion.
Really a matter of the shell, yes. Actually, pretty much anything for that is prepared, there is just too much other stuff I'm busy with. Once I get this working in the shell, a lot of old junk from ViNCed can actually go away, but that would require probably two/three month of ongoing work, spare time I simply do not have.
Anyways - all these are great reasons to rather use AROS :laughing:
Amiga is for me a retro platform. Why someone wants to implement old design errors in a new operating system is probably beyond me. But it's a free world, if you want to waste your time there, be my guest...