When comparing VirtualBox w/ any Linux distro + Terminator vs Xfce4 terminal, the Slant community recommends Xfce4 terminal for most people. In the question“What are the best terminal emulators for Windows?” Xfce4 terminal is ranked 20th while VirtualBox w/ any Linux distro + Terminator is ranked 31st. The most important reason people chose Xfce4 terminal is:
Like other applications included in the Xfce package, this terminal emulator is very lightweight and doesn't require many resources to run. This makes it perfect for systems that have low specs.
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Pros
Pro Runs Pre-configured virtual machines
Allows you to run your virtual machines pre-configured by you or others.
Virtual Box versions for:
-- Windows 7/8/10
-- All Linux installations
-- MAC OS x
-- Solaris 10/11
Virtual OSs include:
-- Oracle Linux 5/6/7.x (RHEL clones)
-- Solaris10/11
-- Occassionally a Windows Beta
Oracle itself provides many free VMs, pre-configured with various software stacks and hands-on lab materials for learning, geared toward. These have helped me earn three of my Oracle certifications:
-- Oracle Database development
-- Oracle DBA
-- MySQL development
-- Java Standard/Enterprise development
-- Big data
-- Webcenter portal & others
Pre-installed software in or more of the various stacks includes:
-- Oracle Database 11/12
-- JDK/Eclipse
-- Enterprise Mgr
-- MySQL
-- WebLogic
-- Cloudera, etc.

Pro Supports modern shells
Whether you prefer zsh, bash, or fish, Linux will support it.

Pro Isolated from Windows
VirtualBox provides almost total isolation from Windows running underneath it, removing a lot of security issues.

Pro Free / Libre Software
While the OS underneath it is proprietary and does spy on you or actively violate your freedom, so to speak, you can still have a little piece of mind knowing that VirtualBox (your Linux distro and shell of choice) as well as Terminator are all FOSS.

Pro Good for systems with low specs
Like other applications included in the Xfce package, this terminal emulator is very lightweight and doesn't require many resources to run. This makes it perfect for systems that have low specs.
Pro True transparency
You can set the transparency of the Xfce4 terminal on any amount you want, out of the box.
Pro Tabs support
Xfce4 fully supports tabs and tab-based navigation.
Pro Almost everything is customizable
You can configure size, color, background, etc.
Pro Composition effects
Xfce4 terminal takes advantage of xfce composition effects.
Pro Fast rendering
Pro Can be switched to a drop-down terminal
You can configure the Xfce-terminal to act as a dropdown terminal if you want, which makes for greater ease of use.
Cons
Con Install a whole operating system for one program
You would need to install the entire Linux distribution just for one single program.

Con Slightly slower than just running Linux
The Windows + VirtualBox layer introduces some overhead that wouldn't be present if Linux were installed directly on the machine.
Con Cannot set text color for character under cursor to background color
Suppose you have a dark background with a light cursor and light foreground color: the light cursor will cover up whatever character it is on, so that you cannot read it. There is no option to set the foreground color for the character under the cursor to what is normally the background color. Such an option would allow you to read the character under the cursor.
Con Execution in xfce4-terminal - e mode is not always functional
Con Resizing text resizes window
Con No profiles
There's no profiles or profile-based customization in Xfce-terminal.
Con Can't scroll on spamming text
When text generates too fast, you can't scroll it, so you just can't read anything in such moments.
Con Does not support sixel images
