Nice. Confirmed this works in emacs as well. Can't say if this is new behavior for emacs because I honestly never tried, but good to know.
I stopped using iTerm a long time ago because Terminal was the only terminal app I found that restored window states after quitting the app. I generally have no problems with it, but my longstanding pet feature wish is that it would also save the input history for each shell session when quitting, as I generally keep several session tabs open for various projects and often use specific terminal commands in each.