This app is a client not a server. Even if it were a server, to get into the app store it would have to be locked inside a sandbox with no shell or access to any directories outside its sandbox, couldn't execute any other binary utilities, and could only run in the foreground.
Yeah that would be amazing! It would leave some questions about how to handle the low screen resolution of the iPhone and what to do about window managers etc. But I hope this will be included soon. It could definitely come in handy!
Does anyone know if this client supports xterm-style mouse handling like PuTTY does?