Things I love in iTerm include the following:
* cmd-click on URLs or filenames to open them in my browser resp. editor -- even recognizes "FILENAME:LINE" to jump to the right line in my editor, which is super useful for errors printed by a compiler
* changing the theme when using SSH and/or root, so I don't accidentally issue commands on the wrong machine or as root
* split views
* lots of other, often "small" features, which I can't think of right now but which I usually notice quickly if forced to use Terminal.app