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Re:iTerm2 version 3 beta released by junkblocker on Wednesday June 01, 2016 @09:58PM (#11819838)
It was all changed to termguicolors finally around 7.4.1809 . Example config:

    if has('termguicolors') && !has('gui_running')
       set termguicolors
    endif
Re:iTerm2 version 3 beta released by berfarah on Wednesday June 01, 2016 @10:02PM (#11819852)
:) Fantastic, that's the setting!