I like the fonts in Ter­mi­nal well enough. How­ever, I like the fonts in the Gnome ter­mi­nal even bet­ter. Here is how to replace them.

Down­load Bit­stream Vera Sans
Open the file
Dou­ble click on VeraMono.ttf
Click Install Font
Open Ter­mi­nal and go into pref­er­ences (choose the set­ting you nor­mally use.  I like Home­brew.)
Click Change and select “Bit­stream Vera Sans” with a size of 12. I cre­ated a new group in the far right called “Ter­mi­nal” to hold fonts I found later. Drag the “Bit­stream Vera Sans” font there for eas­ier selec­tion next time. Close the win­dow.
You really want to check the box for “Antialias text” under Text

Other enjoy­able, pub­licly avail­able fonts include Incon­so­lata and Droid Sans Mono.

Edit -> 19 March 2011.  From Thomas Fuchs, the Meslo LG DZ.