Indeed, this fits my use case to an absolute tee right now. I'm trying to pick up Rails, and doing anything related under a Windows environment is downright painful, and I'd rather not dualboot just to get into "work mode".
Why not spin up an Ubuntu VM in VMware or virtualbox? I'm not knocking the koding terminal, but "I want a Unix environment without dual-booting" is a fairly standard VMware use case.
Spinning up a Virtualbox, especially on a machine with low resources unfortunately is a kill. Besides the Terminal, Koding has features like private Groups, Collaboration, Online editor and so on. That means once you create and begin to use a VM, you can access it from everywhere without any hassle with just one login!
Pretty much took the first few words out of my mouth, there. The fact that this is accessible from any web browser I think is the killer feature. I can't install putty or access ssh on every machine I use.
A free VM I can access with any browser? Awesome.