Ranked in these QuestionsQuestion Ranking
Pro Default terminal on Mac
Since it is already installed by default, you don't need to worry about finding and installing another terminal.
Pro Great compatibility
Works with everything.
Pro Easily open man pages
By right clicking on a highlighted string you can easily search through the man pages for that string and the man page will open in a nice pop up window.
Pro Excellent xterm emulation support
Terminal has nice colors and font options.
Pro Light on System Resources
Terminal.app lighter uses less system resources than iTerm having the same number of windows, tabs and processes going on.
Con Updates are released rarely
Terminal usually gets an update when any new MacOS version is released, which is every couple of years.
Con Tab names are volatile
The tab names never stick -- it's imperative that this should work.
Con Background images are stretched rather than clipped
Con Occasionally crashes
Working remotely with a full buffer may cause complete terminal app crash.