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+++ This bug was initially created as a clone of Bug #173730 +++ The legacy TM Terminal supported an optional separate input line, such that users can leverage line editing and command history on dumb remotes which do not provide that capability (bug 173730). While I do not think that the respective capability has been leveraged a lot in the Field, the TE Terminal should adopt this for feature parity.
http://git.eclipse.org/c/tcf/org.eclipse.tcf.git/commit/?id=a8145734a84329786a04ea82c172089a71a7f293