in Terminal: Backspace works, Delete doesn't

Hi jack-of-all,
If you're talking about editing a command in the command line, your issue is not necessarily one with your terminal but can be address with your shell. You haven't said which shell that is but "stock" configuration suggests that the shell is bash. You can find out with the command:

echo $SHELL

If it is bash, the following command will fixed your problem if your description of your keyboard layout was accurate:

bind '"\e[3~": delete-char'

However, that will only affect the shell in which you executed the command. To have it apply to all shells, you would have to put the command in a shell startup script, like ~/.bashrc or ~/.bash_profile, or both. It might work to use just the latter if you only use one type of terminal.

The process by which the bash shell invokes scripts at startup is described in the INVOCATION section of the bash man page. In reading that, it usually helps to know that a "login shell" is the first one started after you login the computer.

There is a chance that this can be fixed via the terminfo mechanism but I know very little about it. There is a tilde in the "Apple_Terminal" terminfo database. If you set your TERM environment variable to Apple_Terminal, it might fix the delete key problem.
--
Gary
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Q: What's tiny and yellow and very, very, dangerous?
A: A canary with the super-user password.