It supports in-band file transfer: the agent can move files through the terminal stream itself (same channel as the interactive session), which is useful when the agent doesn’t have scp/sftp, shared volumes, or direct filesystem access across boundaries.
Recent example: My Claude Opus was SSH'd into a server and ended up at a Firejail shell running inside a Docker container. It pushed a Python file in via term-cli, moving it across SSH → Docker → Firejail over the terminal channel, and explicitly commented how it was surprised this worked end-to-end.
And it comes with the companion tool term-assist, so agents can bring in their human to handle credentials and MFA: https://www.youtube.com/watch?v=A70tZEVqSOQ