The VSCode terminal is the first time I've felt input lag in a terminal emulator before. When a program shits out thousands of lines of text (like catting a long log file), it takes forever to catch up compared to any other terminal (except the JetBrains builtin terminal, which is almost as slow but still noticeably faster).

In fact, some people still swear by xterm or rxtv alone due to sheer speed. I use Terminal.app on Mac which is also very fast but not xterm/rxvt fast.