Powershell doesn't solve the biggest problem of dealing with cmd.exe: it's still cmd.exe. It's still running in an identical, terrible, interface. Compare the environment in which it runs to iTerm2 on OS X or even gnome-terminal, and it's sadly, sadly ineffective. Hell, my SSH client is a better "console" than the wrapper around cmd.exe/powershell. (And at times I've used it as such, installing cygwin and sshd solely so I could get a sane console in something that wasn't cmd.exe or rxvt.)

The difference between the Windows console and the a Unix one is that you can't fix the Windows console. Some programs, i.e. Console, try, but the Windows CLI is buried way too deeply in CSRSS and ends up depending so tightly on the crap you see exposed in cmd.exe that attempts to build something better have largely failed.