Native xterm in n900 seems very usable to me. The only thing which was bothering me is the selection. So I was happy to find that it's easy to fix in source.

The following five lines of code in terminal-widget.c/terminal_widget_do_keys will create very useful soft button.

if(!strcmp(key_string,"CP")) {
terminal_widget_copy_clipboard (widget);
terminal_widget_paste_clipboard (widget);
return;
}

Then you can use gconftool-2 to add that button to terminal's toolbar. It will act as pressing middle mouse button in regular xterm.

I don't know what is the right way to contact package maintainters or to upload a package. So, I need to know if someone else is interested.