This is annother program like my fvwm - I've been using it for ages, and there is nothing wrong with the old versions thank you very much.
I have only one gripe with my rxvt - it sometimes sticks around or leaves its children around when you rip the xserver from underneath it. One day I will get annoyed enough at this to look for it and fix it.
The only change that I have made to rxvt is to allow \n to be the termination character for ^] escape sequences as well as \07.
The ^] sequence is rather nifty I think, and my current profiles check to see if I am using rxvt and set PS1
PS1='\033]0;'`hostname`':\w\n\$ 'this gives me a nice descriptive window and icon title. There are two reasons that I want \n to terminate the ^] sequence. Firstly, bash counts the characters to the left of your cursor on a blank line by sizing PS1, and using \n makes that calculation actually work (this shows up as strange line wrapping while looking in history at long command lines). The second and more interesting reason is that I was hoping for a hack to let me have the name of the currently executing program appear in the title bar. I was going to use set -x and PS4 in bash for this, and PS4 is terminated with a \n. This turned out to be nifty but causes too many problems (string lengths and script executions). One day I will hack a new item into bash that outputs the line as it would appear in the history list via a string parameter to, say, a PS5.