The "open Terminal of selected folder" is the proper way, it requires a different workflow though, so I understand the issue in terms of muscle memory. An easy

The "open Terminal of selected folder" is the proper way, it requires a different workflow though, so I understand the issue in terms of muscle memory. An easy enough alternative (for me) is to drag and drop the current folder onto iTerm. When you have a folder open in Finder, and hover over the name of the Folder in the titlebar of the window, a blue "folder" icon appears. if you drag that to the iTerm icon in the dock and drop it, iTerm will activate and open a new terminal window in this folder.