> why hasn't Microsoft leadership, running a multi-billion dollar company for decades, already devoted appropriate resources to create an essentially perfect terminal/console, something so discrete and simple and fixed in feature-set?

competing priorities, lack of customer interest, lack of need, desire to keep backwards compatibility, additional support workload, probable belief that they had a good enough terminal, they couldn't find the right people (the project lead for the new terminal was hired into Microsoft specifically for that position, leading me to believe they didn't have anyone internally who was qualified or interested enough to take the job), and because a fully compatible terminal is not trivial to make.

they can't go back in time and make it, they can only change what they're doing now, and Terminal is getting better all the time.

complaint about behavior that is no longer happening is just masturbation, plain and simple.