The Telnet session is great but would be far more useful with the following:
1) Doskey (remember commands)
2) Ability to run local Bat file on the remote machine.
3) Have the telnet session respect the remote PATH settings. This one is essential to me.
4) Be able to configure what the remote starting directory is as a configuration option on the session. In fact, this kind of thing would be great for several other modes (like File Transfer Mode).
5) You should be able to scroll back further and be able to capture to a log file the telnet session.