For the record, that's not pure terminal (it opens up another window). This project works even in a bare vterm. I'd love to see this work over ssh.
Updated command for clarity (might want to fullscreen your terminal with this):
$ DISPLAY= mplayer tv:// -tv driver=v4l2:width=640:height=480:device=/dev/video0 -fps 15 -vo cacaThis also seems to work over ssh, though, which is cool.
One big tip for that mode of mplayer, use the 'd' key to switch dithering modes. Keep switching until you get to Floyd-Steinberg for the best quality (IMHO).