Thoughts
For NATE/SMASH, it seems like we need the prompt to always be focused and always be visible on the screen. So your cursor is always in the
prompt. This lets you preserve the nice behavior of terminals—that the prompt isn't a textbox that you have to explicitly focus, it's always ready to accept input—while removing the annoying behaviors that come from the prompt being a part of the same output character grid, like glitches where the cursor leaves the prompt line.
And then running a command will scroll you down such that, if the command output is too long to fit on one screen, the previous command is aligned with the top of the screen. So it'll be: previous command, previous command output (truncated to fit), prompt at the bottom of the screen ("floating" over the previous command output). And you can scroll down if you want or start typing immediately.
If the command output fits on less than one screen, then you're scrolled to the very bottom.
So the prompt is always stuck at the bottom of the screen. Like Slack or Discord. Oh it's always a good sign when you re-invent something from first principles.