Why render with the GPU? I don't think I've seen a visually slow terminal emulator since 2000 and barely even in the 1990's. Text rendering is basically just blitting cached glyph bitmaps into a buffer, and CPUs have been more than overly fast doing that for eons. And CPU rendering has none of the compatibility problems/quirks that GPUs have. I can fire up a Gnome Terminal onto an unaccelerated Vesa X11 display if my…
Input latency makes for a bad user experience. People just usually don't notice it when typing as it's so common. See https://danluu.com/term-latency/ for measurements of some terminal software and discussion of why latency is bad. I'm not sure if Kitty is using GPU specifically to minimize latency, but it would be a good reason.
That being said I think it is valuable to have a reasonably fast terminal because it's not uncommon to have applications slow down dramatically if they output a lot of information on stdout/stderr while the terminal struggles to render everything.