As Powershell clearly shows, Windows Terminal can output True-color.
Xterm Truecolors. Support for 24 bit truecolor was added to xterm in September 2012 by its maintainer Thomas Dickey. It's an extension to the ANSI color standard using a compatible format and has been adopted by several terminal emulators.
True color mode is enabled by default in iTerm 3.0+. The default MacOS Terminal.
According to this page, Gnome Terminal supports 24bit true color. This is consistent with Wikipedia.
KDE Konsole has true colour support, i.e. every character can have a different 24-bit colour.
Xterm and most other terminal emulators these days have a palette of 256 colours, whereby each of those colours can be chosen out of the full 24-bit range.
I know I'm very late for the party, but I found this : a gist titled "True Color (16 million colors) support in various terminal applications and terminals", which gives information about which terminals support true colour and related discussions in the corresponding communities.
In the older days where terminals originate, they were hardware, and their colourfulness was limited by hardware constraints (i.e. memory shortage). Now we mostly use virtual terminals, which often emulate these older devices in software. So, one point is whether the software terminal actually emulates a device with its historical limitations.
Another point is that there are no conceptual limitations on colours, fonts or anything. This is because terminal is controlled by commands, which are simply special reserved sequences of characters. Commands are not standardized and differ from a terminal to a terminal. And that's exactly why there are virtually no such exotic functions implemented, as it would leave the users with two limiting options:
The third point I'd notice is that such features are not really needed by majority of people.
If you're looking for a quick link for Mac OS X, I just got iTerm2 nightly build and it works perfectly with true color: https://iterm2.com/downloads/nightly/#/section/home
To answer the question about why this is useful: I do research on color, and being able to display colors right in the terminal is super useful for debugging/scripting/you name it.
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