I'm sure everyone has a favorite, mine is simply able to slide out iTerm2 from the top of the screen with a hotkey (tilde ofc.) à la Quake console.
https://apple.stackexchange.com/questions/48796/iterm-as-a-s...
https://apple.stackexchange.com/questions/48796/iterm-as-a-s...
The latency of iTerm has traditionally been much worse than Terminal.app. It got a bit better with GPU rendering, but it still trails behind Terminal.app quite a bit.
https://danluu.com/term-latency/
https://www.lkhrs.com/blog/2022/07/terminal-latency/
I tried iTerm for a while because Terminal.app does not support true color. But the difference in latency is definitely noticeable to me.