What's the best way to simulate a DOS or Terminal screen in a web page?

Question

I'm finding this hard to even conceptualize. The easy way would be to have a large textarea element taking up most of the screen, with a small text input element below it. The player would type in commands, and the output would show up in the textarea.

Problem is, I want the input to be integrated fully. Think of a DOS screen. There is the bracket prompt, >, after which you type in a command. Press Enter and the output is shown below it, followed by another > prompt for the next command. Input is not separate, visually, from output. An example of what I'd like to accomplish can be seen here: http://www.youtube.com/watch?v=UC_FrikiZdE (except instead of using the mouse to choose commands, they can be entered in).

How would I go about doing that in HTML (using JavaScript/jQuery for handling input/output)? I'm thinking perhaps everything is done in an editable textarea, but the Backspace button cannot erase anything from the > prompt and beyond, only text that has been entered in.

What is the easiest way to do this? I haven't been able to find any demonstrations or tutorials online. Can anybody point me to any that I may have missed? Thanks.