Sixels are compatible with cursor positioning escape sequences, so I can position the image on the screen. I wasn't able to do this with term2. Very possible I just didn't see how to do it though. If you have a pointer to docs for making that work, I'd love to play around with it.
Last time I evaluated this, sixel & base64 image placement relative to re-positioned cursor had slightly different behaviors across different implementations. I think the only one with well-defined placement/dimensions behavior was the Kitty format--which is unfortunately Kitty-only.
If the goal is to hot-patch graphics into existing TUIs, Kovid is probably on the right track with this. It needs to be something richer than what sixel or iTerm2 provide--with pixel placement, play/pause, scaling, etc. Though for a do-over of piping a UI over a (relatively) low-bandwidth wire, I think something like Sun NeWS would have been a simpler & more feature-complete approach.
Been using Wezterm for about a year now and I'm a very satisfied user. Beats any others I've ever used - iTerm2 comes close but it's Mac only. Every other terminal emulator in my experience has been problematic. Wezterm has not been. Just works.