I just donated but do you ever consider charging? I think most here would pay. iTerm2 really is the best option and provides a lot of value to developers who make money using it.
Accepting donations is about as far as I'd go with trying to monetize free software. If I were looking for a lifestyle business I might take a try at selling support for it or selling some kind of related SaaS.
Can you atleast show-up a popup for donation? I've been using iTerm2 for couple of years, just realized and donated. A pop-up would remind many people like me I guess :)