Yes, I only used that display for the prototype because it happens to have an SD card socket on the back, and I already had left over from another project. The 1-bit Nokia display clone was exactly what I had in mind. Actually I was thinking to make the display optional, with a couple of status LEDs or something for feedback if you don't want to pay for a display.
Probably not zterm, but some kind of custom software on the Mac could theoretically be used to view and select disk images. I think the HxC Floppy Emulator works that way, with a host-side control tool for the Amiga and Atari ST. Really there are a ton of cool things that could be done from the software end, like a custom disk driver to enable disks larger than a real floppy, or multiple disks from a single device. That's not really where my experience or interest lies though. I'm hoping that if I get some working hardware out there along with good documentation, somebody else might be interested in the software hacking part.
Probably not zterm, but some kind of custom software on the Mac could theoretically be used to view and select disk images. I think the HxC Floppy Emulator works that way, with a host-side control tool for the Amiga and Atari ST. Really there are a ton of cool things that could be done from the software end, like a custom disk driver to enable disks larger than a real floppy, or multiple disks from a single device. That's not really where my experience or interest lies though. I'm hoping that if I get some working hardware out there along with good documentation, somebody else might be interested in the software hacking part.