Seething over MSYS shell - is it replaceable?

Question

I need a serviceable shell for MSYS. This is my current dilemma:

The default rxvt.exe has a scroll bar and copy and paste, but doesn't send control characters or arrow keys to a running program in the shell (like interpreters/debuggers). This is a real thorn when using the Haskell interpreter ghci.

The other shell sh.exe handles control characters (or at least some of them), but has no scroll bar or copy and paste.

rxvt also has (relatively) more issues with output buffering

What are my options? Does the replacement shell need to be msys aware? All I want is a sane environment to work with Haskell (ghc), C++ (gcc), and the basic tool chain (make and what not). I'm willing to compile a shell if it doesn't involve crazy shenanigans.