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Gosh, I don't know if I could live without iTerm2, because it's window and session management is leagues above the normal OSX Terminal. This is always the first thing that I install on any Macbook that I know I'll be using, because I just like the feel, customization, and mobility that iTerm provides over native Terminal. Check out their Features page to see what the fuss is about, but the nice multi-pane/multi-tab controls are enough to justify it's usage to me.
NOTE:
The number of mentions on this list indicates mentions on common posts plus user suggested alternatives.
Hence, a higher number means a more popular project.