I’m always using the Mac OSX Terminal app for things. I was jealous of linux machines though, their terminals were much nicer. Things like the Delete key worked among other things.
I found this to help. (From http://hints.macworld.com/article.php?story=20050525040921189) (Originally it was from http://koorb.co.uk/scrapbook/ I guess, but that page errors out for me.)
Add this to ~/.inputrc (or ~/.bash_profile works too I guess) (it has to go in your .inputrc file.
# this makes the "delete" key work rather than
# just entering a ~
"\e[3~": delete-char
# these allow you to use ctrl+left/right arrow keys
# to jump the cursor over words
"\e[5C": forward-word
"\e[5D": backward-word
# these allow you to start typing a command and
# use the up/down arrow to auto complete from
# commands in your history
"\e[B": history-search-forward
"\e[A": history-search-backward
# this lets you hit tab to auto-complete a file or
# directory name ignoring case
set completion-ignore-case On
# I'm not sure what keys these are!
"\e[1~": beginning-of-line
"\e[4~": end-of-line
"\e[5~": beginning-of-history
"\e[6~": end-of-history
"\e[2~": quoted-insert
Thats it, open a new Terminal window and you’ll be able to Delete away.