In MacTerm, command+option+click will move the terminal cursor in the same way by simulating keys. It also moves “up” or “down”, for applications such as text

In MacTerm, command+option+click will move the terminal cursor in the same way by simulating keys. It also moves “up” or “down”, for applications such as text editors that understand vertical arrows. There is even a preference setting that attempts to move the cursor automatically to wherever you drag and drop text with the mouse. (Note: I wrote MacTerm.)