Hm... I don't see it stating anything about wayland, but since it says "native" in some many places, I need to assume it won't use Xwayland, unless specifically told to.
Assuming you had a pretty decent monitor and graphics output in the 90s, it may have been 800x600, but more likely 640x480, and you'd have been using the standard issue bitmap font with no anti-aliasing, blitted to screen using software rendering. Probably in a single colour, too.
Alas, the problem with that is that it doesn't scale. On xterm a 4K monitor, I can watch Vim redrawing the screen, paging through logs is painful. Use Kitty for the same, it's instant, I can flip through tabs and split screens too, and have niceties like anti-aliased fonts and transparency if I want them.
Some people spend a lot of time in the terminal, so I can't fault them for taking the time to make a nice working environment and sharing that work with others.
I was very satisfied with Bash for a long time until my friend got me using Zsh. I still am not sure i need Zsh over Bash honestly. Command autocomplete is obnoxious
Different things. Bash/Zsh/Fish/Nu are shells, i.e. a low level CLI interface with the computer. On systems with graphics you need a graphical program to display the shell, e.g Konsole/Gnome-shell/Alacritty. Also there's a third (optional) program to render the line where you type commands differently, this is called a prompt and there are several different ones, e.g. Powerlevel10k/oh-my-posh/Starship.
I don’t know that anyone “needs” anything more than bash. It’s the creature comforts that sell the other shells. That said, bash has never hung or crashed on me. I can’t say the same for zsh.
It's incredibly fast, has the features you would want like tabs/splits, maintains comprehensive compatibility, and is written cleanly in Zig. What's not to like?