You can set that in iterm 2. I've had it that way for ages
I suppose my accolade is that Ghostty just does what I want without hunting through config screens and managing file edits.
No, it doesn't.
What you're describing is a Gnome Terminal issue.
https://bugzilla.gnome.org/show_bug.cgi?id=697475
But OSC 7 is a standard supported across virtually all widely used terminal emulators anyway, so configuring your shell to emit it is a sensible thing to do regardless.