I use Windows + WSL on a daily basis for web development. This is what I did about the Terminal Problem: I installed XMing (an X-Server for Windows). Then I configured WSL to use the the X-Server installed on the host. This way I can use any Linux terminal emulator (actually any Linux GUI Application) on my Windows machine. This works surprisingly well for how much of a hack this is. I've been using this set up with gnome-terminal on a daily basis for over a year now.
It'd still be great if there was a solid windows-native alternative.