The IBM approach was to have one big box do all the
thinking for all
the terminals, with the terminals being not much more than TVs with
keyboards (2848/2260) - I suppose with one brain doing all the work,
you could save a bunch of expensive circuitry.
I think ICL did something like this (possibly a little later, 1970s?).
I've seen ICL 'terminals' where the interface was the keyboard signals
(parallel TTL levels I think) and composite video. The 'terminal' case
jsut cotnained a composite video monitor.
-tony