When comparing xterm vs Alacritty, the Slant community recommends Alacritty for most people. In the question“What are the best terminal emulators for UNIX-like systems?” Alacritty is ranked 7th while xterm is ranked 13th. The most important reason people chose Alacritty is:
Written in Rust with a philosophy focusing on speed and simplicity, Alacritty is one of the fastest terminal emulators out there.
Specs
Ranked in these QuestionsQuestion Ranking
Pros
Pro Lightweight
Xterm is a very lightweight terminal. It requires few resources, allowing it to run well even on lower-end machines.
Pro Used in almost every Linux distribution
If you master xterm, you won't have to learn another tty, since it is in almost every Linux distribution.
Pro Stable, well-tested
Pro Standard with X Window system
Xterm is installed as standard software with the X Window system, and is there even when installing other terminal emulators.
Pro Supports sixel images
Pro Shows full characters for wide fallback fonts
Many terminal emulators that deal with wider fallback fonts (i.e. double-wide characters in CJK fonts) truncate display of wide characters, show Unicode "missing glyph" characters, or simply fail to display the characters at all. XTerm is "smart" enough to simply take up the extra space needed to show such wide characters.
Pro In about 30 years, it had only one issue, and that was fixed quickly
Pro It is fast and responsive
See this.
Pro Many modern terminals emulate xterm
Many terminal applications, such as OS X's Terminal.app and iTerm2 (among others), all claim xterm or xterm- variants as their $TERM and aim for support of xterm's escape sequences. Many command-line applications will assume or even hard-code escape-sequences and behavior for xterm and those terminals emulating it.
Pro Configurable via Xresources
X Toolkit resources and xrdb predates what is currently called "theme". Although one needs to read man, mitigates most listed cons
Pro Blazing fast rendering with GPU-accelerated
Written in Rust with a philosophy focusing on speed and simplicity, Alacritty is one of the fastest terminal emulators out there.
Pro Looks good
Alacritty looks very slick on Linux, especially with GNOME or i3.
Pro Simple configuration
The configuration file is very well made and easy to use. You can fine tune your preferences to perfection in a matter of minutes.
Pro Comprehensive font options
Alacritty can be configured to adjust line spacing (height), letter spacing (width), and individual character horizontal/vertical positions.
Pro Has support for image previews in w3m and ranger
Pro Has text ref-low when window is resized
Pro Fast and simple but with true color support
It's simple and fast like xterm or urxvt but with truecolor support which is a big plus if you use a terminal based code editor. Basically Alacritty has all the features you need and nothing you don't (if you're using tmux for multiplexing).
Cons
Con No native transparency
Xterm does not natively support transparency (though it can be emulated if needs be).
Con Bad defaults
Very small default size. No way to know to how to configure size.
Con No tabs
Con It blinks
If it blinks for you too, you can try this: man xterm
and then press Shift+G.
Con Has few dependencies
Has dependencies like xbitmaps.
Con Historical source code
The stories behind terminal emulation beyond their classical representatives (of which xterm is simply the most long-lived) are somewhere inbetween subtly irritating to downright surreal.
Con Cannot into ligatures
Alacritty does not support ligatures in Fira Code, Iosevka etc.
Con Unreliable Font Rendering
Like a box of chocolate you never know what you're going to get.
Con Sacrifices basic features for raw performance
The Suzuki GSXR of terminals. Or your ditzy, blonde high school cheerleader; fast and pretty but not a lot going on under the hood.
Eschews a negative developmental philosophy towards including said functionality, with the official reason cited in project documentation as "Not within the realm of a terminal emulator" and ostensibly, "best left up to other tools such as terminal multiplexers" [such as screen or tmux]. Which is unfortunate when you factor in speed against terminal with the functionality built in vs their reliance on 3rd party tools:
tmux on alacritty: 'find /usr' time: 3.234s, cpu: 72%
tmux on konsole: find /usr' time: 1.777s, cpu: 96%
See issue here.