Granting terminal full disk access grants arbitrary scripts full disk access. There’s a lot you can do with ACLs and the permissions system, but it’s not reflected in the UI for settings.
Then there’s allowing access to documents, downloads, desktop, external disks. This should really allow the user to select a path or paths for applications, because these options are way too broad (especially external disks).
I would still like to see not only more granular permissions, but single use permissions. Once I grant iTerm access to Documents for whatever reason, it always has such permission. I would be nice to limit that to a single use, or a single harness session.
Indeed, I run all dev tools including coding agents inside sandbox now
Edit: I should say, the model it was created with (select a folder, all media in that folder is mirrored) requires such permissions. One could imagine designs that don’t.
But your terminal shouldn't be accessing any files; you just need to be able to launch /bin/zsh or whatever you use as your shell. The shell needs to be able to access files, but its container doesn't.
Of course, you could go farther. For example, on OpenBSD, even /bin/ksh has been somewhat sandboxed; it can see most of the file system, but the things it can do have been limited:
if (pledge("stdio rpath wpath cpath fattr flock getpw proc "
"exec tty id", NULL) == -1) {macOS has had a capabilities model for over a decade called App Sandboxing. It would be entirely impractical to expect app authors to correctly declare their permissions up front and for users to audit them. Hence the permissions granted to sandboxed apps are pre-determined by the OS, and can be extended through explicit user interaction.