Hi Benno,
Thanks for checking in! I had some problems with my computer the past week, so couldn't check.
Yes, I am now running 4.9.
It is behaving like you described: Ctrl+H and Backspace are equivalent when running `nano` and they both do 'backspace', regardless of the binding of ^H. However, running `nano -K` behaves correctly, namely ^H replaces and backspace erases. As for running without mouse support, that's OK, I never used mouse to click somewhere. And scrolling the mouse still moves the cursor in nano, so that's great.
It seems the Sakura emulator is correct, this is what I'm getting:
infocmp| grep -o kbs=..
kbs=^H
So, is this a bug that I should file with iTerm2 ? The behaviour is the same in the built-in Terminal app, though I don't have any hope of getting that changed.
Many thanks for your help!
Happy Easter !
Ciprian