The Wayland project is led by Kristian Høgsberg and recently he's been attempting to get a full-screen X Server running within Wayland. As Kristian mentions in his new blog post though, so far the system is only crashing or locking up when attempting this feat. In the process of this work, Kristian has written a basic terminal for Wayland with very limited ANSI support. The plan though is to add a Wayland back-end to GTK+.
More information on this Wayland update can be found on Kristian's blog.