With the release of Leopard (OS X 10.5) came a sufficiently usable Terminal (aka tabs). The only real complaint I had was the font.

I ended up tracking down the default font used in the GNOME terminal and installed it using the steps below:
- Download Bitstream Vera Mono 1.10
- Extract the archive
- Double click on VeraMono.ttf
- Click Install Font
- From Terminal click Terminal->Preferences
- To the right of Font click Change...
- Select Bitstream Vera Sans for the Family
- Select 12 for the Size
- Close the Fonts window
- Enable Antialias text under Text
- Restart the Terminal

