You can configure iterm2 to do whatever you want in new tabs or panes. This feature has been available for over a decade.

I have it reuse the same directory in a new pane. And my home directory in a new tab.

You can set that in iterm 2. I've had it that way for ages

Then I suppose my accolade is that Ghostty just does what I want without hunting through the configs.

> it depends on edits to my shell config files

No, it doesn't.

What you're describing is a Gnome Terminal issue.

https://bugzilla.gnome.org/show_bug.cgi?id=697475

But OSC 7 is a standard supported across virtually all widely used terminal emulators anyway, so configuring your shell to emit it is a sensible thing to do regardless.

https://ghostty.org/docs/vt/osc/7

Hah, I actually just switched to Ghostty and had to turn that feature off. Yay for configuration.