True. Not sure how much changed though. Do you have any list of things that differs, and things that AA or Heathkit did better?
Always Emacs. (Proper Emacs, that is, not the GNU stuff... :-) )
Possible. But people in general seems to have preferred the VT100 to most other stuff on Unix as well, judging by history.
xterm is my savior. It actually do things pretty might right all the time.
Let me guess - the missing escape key? :-)
(That one drove almost everyone bonkers...)