Replacing LF behavior with NL behavior in terminal raw mode is a non-starter, decades worth of software will break. The enter/return key only sends CR anyway, software has to decide what to do with that: sometimes the answer is emit CRLF, often there are program-defined margins so the CR gets translated to direct cursor movements.
I'm pretty sure drh is making a case only against the use of CRLF in protocols, not trying to redesign terminal in the process. If you're emulating a machine which understands LF then you're kinda stuck with line feed semantics, for better and for worse.