The thing is that on Windows it isn't really possible to make a terminal/console app which talks directly to the shell (cmd.exe etc) running in it. What everyone is doing is opening a hidden 'console' component which runs cmd.exe/powershell.exe and then screen-scraping the contents out of it and rendering it elsewhere. Most emulators on Windows which support cmd.exe and friends are using a little bit of software which handles the hidden console, monitors its contents and then outputs a VT style stream of the updates. It is not pretty. MS have been working to improve the situation though: https://github.com/Microsoft/console/issues/57
The bizarre twist to this story is that it is going to be easier to add shell integration features to PowerShell Core running on every platform which ISN'T Windows.
What you're describing is necessary when going the opposite direction and trying to translate windows console buffers into VT data streams, but that's not really necessary for something like this since the native console interaction isn't used. Just grab plink's stdin and stdout and you'll get precisely what comes through SSH, escape codes and all. Well, almost, I think plink does some EoL conversion.
The bizarre twist to this story is that it is going to be easier to add shell integration features to PowerShell Core running on every platform which ISN'T Windows.