xinit has a 'minimal' USE flag that tells it not to install twm, xclock, and xrdb. xinit also lists xterm as a PDEPEND. xterm is a much larger dependency than twm, xclock, and xrdb combined (it also pulls in a lot of other crap). Moreover, xinit doesn't need xterm, especially in a minimal environment. I have aterm. There's no reason that xinit shouldn't work with aterm. So my point is, either remove the xterm PDEPEND or make it !minimal? (x11-terms/xterm).
*** This bug has been marked as a duplicate of 110880 ***