Version 4.0 is out: https://phab.enlightenment.org/phame/live/3/post/terminology_0_4/ This release features: text reflow on resize, full 256 colors support, improved terminal compatibility, improved selection handling, backscroll compression to reduce memory usage, many bug fixes, and more!
The alpha1 release which is in tree is almost equivalent and complete support of all the listed enhancements/bugfixes you only get in combination with efl-1.8. Therefore I intended to wait for efl-1.8 hitting the tree which will hopefully happen within the next couple days. Let me know if you are in a hurry.