The new addons for xterm.js will be published as standalone modules which will be much nicer. However, they declare xterm as a peerDependency which we don't have because we're on the fork vscode-xterm. Because of this I was considering moving vscode to just sit on xterm now that we have beta builds for every change that goes into master, but that comes with its own drawbacks, namely:

• We cannot pull in a portion of xterm.js that we define.
• It might be hard navigating which beta build does what, right now vscode-xterm releases contain a full diff of all the changes
• We cannot cherry pick new changes into an old build, this is particularly important for stabilization

Given the above I think sticking with vscode-xterm is the right thing to do. To deal with the addon problem I think we should also fork the addons and redeclare the peerDependency and the module import to solve that problem (if we do xterm as a monorepo that makes this a little easier xtermjs/xterm.js#2161).